Why Is Financial Wellbeing So Important?
September 6 2018Read more
With Talk Money Week 2019 (formerly Financial Capability Week) commencing on the 18th November, organisations are being encouraged to start conversations about money in the workplace and to promote ways to improve employee financial capability.
Financial wellbeing is rapidly becoming a more widely known concept for both employees and employers alike. It is increasingly accepted that employers can and should do more to promote sustainable financial planning practises and increase the financial security of their employees.
The mental health effects of poor financial wellbeing for employees are well known, however, research has found that organisations can also suffer when their team members are concerned about their finances.
In 2018, Aegon reported that 11% of workers surveyed admitted that they have experienced a drop in productivity as a result of their personal financial situation. This can result in deterioration in the quality of work your team produces, a decrease in new ideas being created at work and routine tasks taking longer to be completed.
To help reduced the risk of your organisation being negatively affected, we have listed several tips on ways you can support your staff in maintaining their financial wellbeing:
According to a Barclays survey, one in five workers say they would value broader financial guidance, debt management and counselling if they were in financial hardship.
Organisations could consider offering money management guidance, debt counselling, and coaching on debt consolidation. If you don’t have the skills in-house to provide this information, there are money management service providers who offer tailored programmes aimed at employees.
For city centre workers in particular, car parking can set staff back a considerable sum over the course of the year. You can assist your staff by identifying areas around the workplace with either free or cheap parking.
You could also introduce a cycling scheme at work, or encourage walking for those within a reasonable distance. This would have the added benefit of healthier staff, which could lead to a more productive workplace.
Offering flexible and remote working to employees can help reduce costs that add up throughout the year, such as transport, childcare and work-wear costs.
This one might sound obvious, but doing research, and seeing what other companies in your sector offer, is worth the effort. If you’re active and generous, you’ll make your workers happier, and attract the best talent.
Use appraisals as opportunities to review your team members salaries on a regular basis, as well as looking to develop their progression within the organisation. If you set performance targets and objectives, this will keep your team motivated and reduce the risk of them feeling stagnant and worrying about their finances.
By offering your support to employees who are struggling with their financial wellbeing, not only will you retain key members of your team, but you will attract better talent as a result of your efforts.
If you would like to find out more information on any of the topics mentioned in this article, please contact Health Assured on:
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