In times of uncertainty regarding the cost of living, inflation and rising energy prices, financial wellbeing has become a growing concern for many.
Worrying about money and personal finances is a miserable time for anyone, however, for employees, it can harm both their personal and professional lives. Financial stress can lead to many sleepless nights and an inability to fully focus on work.
Money worries have become a common cause of anxiety and one of the biggest causes of stress for employees across the UK. As a result, more businesses have started to prioritize and support employee financial wellness.
Employee financial wellness is the empowerment and confidence employees feel when they know that they can pay their bills, finance unexpected expenses and work towards a healthy financial future.
As an employer, there are many ways you can actively help your employees better manage their finances. This article explores six effective ways you can empower and support the financial wellness of your employees.
Let’s begin!
1) Offer Financial Benefits and Perks
As an employer, you can help your employees save money in many different ways. Beyond traditional benefits, you could offer various financial perks to help them build wealth and reduce financial stress.
From offering employees loans to employer-sponsored savings plans and emergency funds, there are many ways you can help. Consider offering housing or transportation stipends to help them reduce expenses.
The addition of employee discount programs alongside financial wellness challenges and incentives may also prove beneficial in supporting your employees.
2) Provide Financial Education and Resources
Many employees experience struggles with managing their money. Giving employees access to financial education and resources allows you to empower your team to make informed decisions and take control of their financial lives. By offering this vital support, you can help your employees improve their financial situation and reduce their stress.
Consider conducting financial wellness workshops and seminars. Some topics you might want to cover may include saving, budgeting, investing, debt management and retirement planning. Providing your employees with easy access to financial education platforms or financial advisors can be just as effective as financial perks.
Ensure you tailor your resources based on the interests of your workforce. By asking them what they would be more interested in learning about, you can increase the amount of information they take in and retain.
3) Create a Culture of Open Communication
Talking about money is never easy for employees, especially if they are worried about their financial situation. However, this reluctance to discuss finances along with the isolating nature of financial stress could be preventing employees from seeking the support they need.
Having a culture of open communication and support around financial topics in the workplace is very important. It allows you to create a safe space for your team to share their struggles and ask for help if they require it.
To begin, encourage open conversations around financial well-being in team and one-on-one meetings. You could also create peer support networks or anonymous ways for employees to seek financial guidance or assistance.
The goal of open communication is not to pry into your employee’s personal finances, but rather to create a safe environment for your team. This allows them to feel supported and empowered to ask for help if they need it.
4) Discover the Specific Challenges Your Employees Face
Employees may be suffering from poor financial well-being for many different reasons. As such, each employee may require different forms of financial support to help them out.
By understanding the unique situation of each of your employees, you will be in a better position to support them. You need to take the time to discover and understand their specific financial challenges.
This approach may seem a little forward and you may worry about “overstepping boundaries”, however, many employees often want their employers to take an interest in their personal lives. This is especially true if their financial challenges are affecting their professional performance.
5) Offer Flexible Working Options
Financial stress often comes along with time poverty and an imbalance in the work lives of employees. Through offering flexible work arrangements, you can reduce financial strain, create a more resilient workforce and support employee well-being.
Consider providing your employees with options such as compressed hours or hybrid/fully remote working opportunities. Providing paid time off for personal or family needs will also be much appreciated.
When employees have the flexibility and support to effectively manage their personal lives, they can focus on their work and make better financial decisions.
6) Focus on the Present as Well as the Future
Traditionally, many employers often focus on providing employees with long-term financial support such as pensions or share schemes. This is important, however, it does not help employees who are undergoing heavy financial stress and require immediate support.
To support your employees effectively, ensure your financial well-being plans address the issues they are facing in the present. From providing on-demand pay to support with paying off debts, there are many ways you can help your employees better manage their current financial situation.
To Wrap Up
Financial wellness support is a must-have for any organization and forms an integral part of every business’ employee wellbeing strategy.
Unfortunately, financial stress is a reality for many employees and can harm their wellbeing, productivity and engagement at work. However, as an employer, you have the unique opportunity to support your employees’ financial well-being and create a strong, resilient and thriving workforce.
By providing employees with financial wellness support, you can improve employee performance and make a real impact on their quality of life.
