How to Support Your Employees’ Financial Wellbeing

According to a report by the Money Advice Service, 39% of adults don’t feel confident managing their money and almost 9 million are in major debt.  

Discussing finances is often seen as a taboo in British culture, especially in the workplace. However, money troubles are common and can have a huge impact on mental health, which in turn impacts an employee’s ability to do their job well. An employee’s financial situation can also have a physical impact on their work; they may be stretched to afford the cost of travelling to work or struggle to afford childcare during working hours. It can be an uncomfortable situation to bring up, so as an employer you should be looking out for the signs among your workforce.  

Regardless of salary, there can be many contributing factors, says Sam Fuller, managing director of The Wellbeing Project. “There is always the bigger picture; employees, despite what they are earning, may be going through addiction or divorce that heavily impact their financial situation,” she explains. You might assume that financial wellbeing is only a problem for younger workers, but money worries aren’t limited to any particular demographic – everyone’s personal circumstances are different, even if they have the same job. 

Research by Salary Finance found that the two economic groups with the highest financial worry are those at the very bottom and top of the income scale. The research concluded that it’s not how much an individual is paid, but how they spend or save the money, that determines their overall financial wellbeing. The Money Advice Service also found that 10.7 million adults “rarely or never save” and have less than £100 in savings. This means that one unexpected bill is enough to push a large proportion of the working population into debt. 

Particular situations to look out for among your employees are addiction, divorce, starting a family and the death of a family member – which all have the potential to completely flip an individual’s financial situation. Creating a more open and trusting relationship with your employees is essential to offering them support, should they need it. You could also implement practical employee benefits to ease the financial burden, such as bonuses, flexible working hours, life assurance for family members, healthcare cash back or an Employee Assistance Programme. Ensuring your employees know they aren’t alone through difficult periods is central to maintaining employee wellbeing.