Research from Step Change Debt Charity shows one in three UK households is now struggling to pay the bills. This has been attributed to the continued cost of living increases and rising energy prices, meaning more people are using credit cards to pay their essential bills.
Why should employers care?
Money, finances, and debt are the most common source of anxiety (Mental Health Foundation, 2021), and are frequently linked to lack of sleep, depression, and physical health problems. People Management pre-covid reported that ‘employee financial worries are costing UK employers an estimated £15.2bn every year in higher turnover, lost productivity, and increased absence’ (2019).
What is Financial Wellbeing?
Financial Wellbeing is having a good state of mind about the ability to manage finances, financial responsibilities, and future financial status.
But what can employers do?
Everyone worries about money at some point, regardless of salary, savings, or situation. Money can be an uncomfortable topic to address, but it doesn’t have to be.
Here are a few ways to encourage financial wellbeing at your organisation:
Regularly promote your employee benefits that can help your employees with their personal finances and look to seek out more as part of your ongoing strategy. On average only 10% of employees engage with their organisation’s financial benefits (Octopus).
Encourage employees to understand their own financial health, by encouraging them to take a financial health quiz, and provide access to support.
Provide a financial wellbeing program that helps employees better manage and understand their finances. Covering subjects such as budgeting, making your money work for you, debt elimination, and retirement planning.
Bring in a financial expert once a month to talk about topics like investing basics, student loan repayment options, and frugal living. Hosting lunch and learn sessions will help employees feel more relaxed while gaining valuable information.
Provide access to financial resources designed to meet the needs of particular demographic groups, including women, LGBTQ+, racial and ethnic minority employees, and those at specific income levels.
Offer financial counselling and/or coaching services for people to discuss their situations on a 1-2-1 basis.
If you would like more information or a free organisational consultation, contact David on +44 7859 963571 or email sales@executivescience.co.uk
Executive Science can provide an array of wellbeing solutions that have been designed to give people the knowledge and confidence to take control of their finances and reduce money worry.
