Financial Wellbeing

Money isn’t everything, but positive financial wellbeing can significantly improve overall welfare.

For employees, financial wellbeing can eliminate poor mental health, plan expenditures, and grow economic achievement.

As an employer, protecting and measuring the financial wellbeing of your employees is a moral duty. By doing so, you’ll be able support them through monetary disasters, like debt or bankruptcy.

Let’s learn all about financial wellbeing, why it’s important, and how to promote it positively in the workplace.

What is financial wellbeing?

Financial wellbeing relates to when a person faces monetary needs in their life. It’s about how they use their money to survive; like paying bills, spending on essentials, and even enjoying life.

Financial wellbeing is a part of employee wellbeing; and should be promoted simultaneously in the workplace. Employees gain from understanding financial planning benefits, systems, and outcomes.

Monetary burden can be managed through budgeting, saving, and living within practical means. As an employer, you should be committed to improving their wellness and reducing 'money-stress'.

In this podcast episode our head of Clinical Support, Kayleigh Frost, speaks to Legal Advisor, Farzana Rahman and Management Account, Ziahual Hoque, about the importance of financial wellbeing during the cost of living crisis and gives some advice and tips on how maintain a better financial status.

Why is financial wellbeing at work important?

In the UK, the rise of living costs is causing more of us to live, 'in the red'. Living on overdrafts and loans quickly becomes our only means of survival.

Through financial wellbeing, you can attain, protect, and utilise monetary resources–helping to avoid economic dependence, debt, and bankruptcy.

Alongside the economic struggles, people may go through issues with physical and mental health. Financial wellbeing can directly cause stress and depression; and as a result, millions of workdays are lost through sick leave.

Many employers support workplace financial wellbeing as it’s beneficial for overall business. Without recognising it, the consequences can impact your employees–and in turn, workplace performance.

How to promote positive financial wellbeing in the workplace

With living costs increasing year on year, more of us are struggling to find ways to make ends meet.

There are various financial wellbeing strategies, which provide help with savings, debt, and credit issues. Here are steps on how to promote positive financial wellbeing in the workplace:

Introduce a financial wellbeing policy

You should have a policy on financial wellbeing to protect staff and the overall business. Your policy may include:

• Offering links to governmental advice, like the Money and Pensions Service.
• Ensuring employees are fully aware of their legal and business entitlements.
• Providing insight on monetary challenges and opportunities to all employees.

Increase short-term savings

You can offer connections to financial service providers who can help your staff with saving money. Give information on services like, payroll savings schemes and finance management support.

Provide access to affordable credit

You can provide immediate loans or bigger credit amenities at lower interest rates. These affordable loans can help employees through debts and avoid late charges.

Eliminate financial stigma

Too often employees struggle with managing financial problems alongside their work life. By eliminating the stigma around monetary concerns, you can support employees through physical and mental issues relating to these problems.

Reduce employment costs

You can easily provide support and care to your staff through reducing employment costs. These can include, providing free breakfasts/lunches, paying work expenses, or offering discounted commute passes.

Provide aid through sick leave

One of the biggest problems involved in financial wellbeing, is dealing with sick leave. Companies might have this process in place, but the benefit amount might be insufficient to live off.

By providing additional aid to employees on sick leave, they’ll feel supported during absences. This can then reduce long-term sick leave and presenteeism.

Actively help through advice and support

Offer employees administrative advice on understanding their financial wellbeing. Employee benefits allows them to access support through appropriate services.

For example, if someone is going through sick leave, you should provide correct legal information and entitlements.

Get expert guidance on financial wellbeing with Health Assured

It’s so important to help all employees suffering with finances, debt, and loans. Whilst you’re not expected to hand out advances, you still hold an ethical duty to support them.

Focus on creating a business which promotes the importance of positive financial wellbeing. By doing so, you’ll be able to protect your employees’ overall health and welfare.

Health Assured offer expert guidance on financial wellbeing. Our teams can help you safeguard employee wellbeing whilst simultaneously meeting your company needs.

We also provide a 24/7 helpline, that’s open 365 days a year–helping you care for your staff all year round. Arrange a call back from an expert today on 0800 206 2532.

Request an EAP Demo