Personal finances and the cost of living have become a tumultuous topic for many over the past few years in the UK, and as a result, financial wellbeing has become a crucial aspect of overall employee wellness.
Financial stress can significantly impact an employee’s performance, productivity, and morale. A study by Aegon released late last year found that absenteeism caused by financial stress costs UK employers up to £3.7 billion a year.
So, how can we, as employers, aid our teams in protecting their financial wellbeing and banishing financial stress from the workplace?
This blog post aims to provide actionable tips for improving financial wellbeing among employees, benefiting both individuals and their employers.
What is Financial Wellbeing?
Firstly, it is helpful to understand what we’re referring to when we discuss financial wellbeing.
To put it simply, financial wellbeing refers to an employee’s ability to meet current and ongoing financial obligations, feel secure in their financial future, and make choices that allow them to enjoy life.
It’s about having financial freedom, control, and flexibility to make decisions that improve one’s quality of life.
Poor financial wellbeing presents financial distress. This often looks like employees feeling stressed about how they will pay the bills and afford day-to-day expenses.
Many people in this situation feel embarrassed and therefore do not speak much about their struggles, meaning that poor financial wellbeing can at times be difficult to spot.
Benefits of Promoting Financial Wellbeing at Work
Investing in employee financial wellbeing, while benefiting your team hugely, can also yield significant returns for your business, including:
1. Improved employee productivity and performance
2. Enhanced employee satisfaction and morale
3. Lower absenteeism and turnover rates
4. Better recruitment and retention of top talent
Top Financial Wellbeing Tips for Employees
Provide Financial Education Workshops
Empowering employees with financial knowledge is a brilliant way to help your team develop their financial literacy. You could organise workshops covering topics such as:
- Budgeting and expense tracking
- Saving strategies and goal-setting
- Basic investing principles
- Debt management and reduction
Companies like Google and American Express have implemented successful financial education programs, resulting in increased employee engagement and reduced financial stress.
Offer Employee Assistance Programs (EAPs)
EAPs can be valuable resources for supporting financial wellbeing.
Through EAPs, employees can access confidential financial counseling, which provides personalised advice on budgeting, saving, and investing.
Additionally, these programs often include debt management assistance, helping employees develop strategies to reduce and eliminate debt. Many EAPs also offer retirement planning advice, ensuring that employees are well-prepared for their future financial needs.
Consider partnering with reputable financial institutions or advisors to provide these services to your employees.
Encourage the Use of Financial Tools and Apps
Recommend popular financial management tools and apps to help employees take control of their finances:
- Snoop Finance for budgeting and expense tracking
- YNAB (You Need A Budget) for zero-based budgeting
- Revolut for budgeting, investment tracking, retirement planning, and more!
These tools can help employees visualise their spending habits, set financial goals, and make informed decisions about their money.
Implement a Flexible Benefits Program
Offer a range of benefits that cater to individual financial needs and life stages:
- 401(k) plans with employer matching
- Health Savings Accounts (HSAs)
- Student loan repayment assistance
- Childcare benefits
Flexible benefits allow employees to allocate their compensation towards the areas that matter most to them, enhancing their overall financial wellbeing.
Promote a Healthy Work-Life Balance
A good work-life balance contributes significantly to financial wellbeing.
Consider implementing policies that allow for greater flexibility in how and when employees work. Remote working options can provide employees with the opportunity to save on commuting costs and better manage their time.
On the other hand, flexible working hours enable staff to attend to personal matters without sacrificing productivity, potentially reducing the need for paid time off.
Additionally, offering paid time off for volunteering or personal development demonstrates a commitment to employee growth and community engagement.
These practices can help reduce stress, increase job satisfaction, and potentially lower expenses related to commuting or childcare.
How Benefits Cloud Can Help
At Benefits Cloud, we specialise in designing and implementing a
comprehensive employee benefits program that helps employers prioritise their team’s financial wellbeing. Our team and platform can help your organisation:
- Help you design tailored employee benefits initiatives using platform features like the cloud store and the pin board.
- Implement and manage a flexible benefits program
- Provide ongoing support and resources for your employees.
By partnering with Benefits Cloud, you can create a workplace culture that values and supports the financial health of your employees.
Conclusion
By implementing these tips and focussing on your employees’ financial health, you can create a more engaged, productive, and satisfied workforce.
Remember, investing in your employees’ financial wellbeing is an investment in your company’s future.
Ready to take the next step in enhancing your employees’ financial wellbeing?
Get in contact today to learn more about the Benefits Cloud platform and how it can enhance your team’s wellbeing!