In our latest article, our HR team explore what employers can do to support the financial wellbeing of their employees.
Financial wellbeing is a sense of security that a person feels when they have enough money to meet their everyday needs. It also means having the financial freedom to make the choices that allow you to enjoy life.
There is no specific financial amount that someone should have in their bank account which is linked to their wellbeing. However, financial wellbeing is closely tied to a person’s own sense of financial stress and financial confidence.
As the effects of the pandemic continue to impact home and work life, financial wellbeing is likely to be a concern for many employees.
Research has shown that employees who are struggling financially may report one sign of poor mental health, which could affect their ability to perform at work such as loss of sleep, poor concentration and reduced motivation.
The financial wellbeing of staff will be impacted differently both in the short and longer term and therefore businesses will need to consider their employees’ different circumstances such as:
- A reduced or loss of salary
- Increased costs incurred at home due to school closures or increased caring responsibilities
- Concerns about the long-term impact of the pandemic on their financial stability
However, employers can provide emotional and financial wellbeing to their workforce to support and aid productivity.
Encourage line managers and employees to have open conversations about financial wellbeing and aim to reduce any stigma regarding money matters.
Businesses may consider providing tools, apps or personal advice to employees who may be struggling financially.
Short Term Savings
Employers could consider partnering with financial services providers, to offer payroll savings schemes making it easier for employees to save.
Offer access to advice and Support
Business could provide a source of information to staff and proactively distribute literature on financial wellbeing and signpost advice services where appropriate, such as welfare and debt services when employers know an employee is facing a substantial loss of income, reduced hours or sickness absence.
Step Change the debt charity, provides expert advice on how individuals can deal with debt and get the support they need. The charity provides advice online or over the phone and they will recommend a range of practical debt solutions based on the individual’s circumstances.
The Money Advice Service also offers advice on this subject.
The Financial Conduct Authority offers guidance on the national provisions around mortgage holidays during the pandemic.
Flexible work arrangements will allow more employees to contribute at work and can be particularly beneficial to those who must take time off work due to caring responsibilities or who are struggling with poor mental health during this time.
Employer Assistance Programmes
Employers could consider introducing an Employee Assistance Programme, (EAP) which will help support their employees during this difficult period. Many EAP programmes will also provide support with financial matters.
Employers and line managers should keep updated on national decisions regarding financial support, including the Coronavirus Job Retention Scheme, and ensure they can advise staff appropriately.
If you would like any further advice on Financial wellbeing, introducing flexible work arrangements or the CJRS, please contact CBW’s HR Team.