7 Steps to Support Staff Financial Wellbeing at Work

Poor financial wellbeing is a leading cause of stress in the UK. The damaging impact of this on your workforce cannot be underestimated: it can have a drastic effect on employees’ mental wellbeing, engagement, productivity and morale. It's important to normalise conversations around financial wellbeing in the workplace so that employees can feel properly supported with both their finances and mental wellbeing.

Financial stress and mental health are intrinsically linked—staff with mental health issues are more likely to have problem debt, and staff with problem debt are more likely to experience mental health problems.

A study conducted by the Chartered Institute of Personnel and Development (CIPD) found that:

“Money worries can contribute directly to employee mental stress, and the financially stressed are more likely to suffer conditions such as fatigue and heart attacks as well as alcohol and drug abuse. A quarter of people taking part in our 2019 survey believe that poor financial well-being is a significant cause of employee stress. And yet over a third disagree that employees in their organisation demonstrate the knowledge and skills to make the right reward and benefit choices to meet their financial needs.” 

These findings indicate that there is a strong business case for financial wellbeing support for employees. One common misconception in the workplace is that financial stress is not the employer’s responsibility, and is instead only down to the employee. However, there are plenty of steps that employers can take to support their employees through tough financial times. Employers should look to improve financial wellbeing for employees, even when you can't afford pay increases.

Financial Wellbeing Definition

How To Improve Financial Wellbeing Support For Employees​ In 7 Practical Steps

1. Understand their needs

Before any financial wellbeing strategy is put into place or reviewed, it’s essential to understand the needs of your workforce. Each employee will have different challenges and it’s important to not make assumptions—financial stress doesn’t just impact those on a low income. 

Surveys and focus groups offer a great way to get a mix of feedback and data, but employers should keep in mind that an anonymised survey can help uncover insight that staff might not be willing to share openly. Employers could also consider introducing one-on-one chats, financial wellbeing assessments, workplace financial education sessions and employee resource groups (ERGs) to help them to learn more about their employees’ individual financial situations. 

2. Provide Access to Financial Education, Resources and Tools

Implementing a financial education programme with a range of practical resources can equip people with the knowledge and skills to feel more confident with their finances. Enhancing this with financial wellbeing training helps communicate the benefit of these resources, and promotes them in an accessible and effective way. Don’t just focus on the launch of the programme; remember to continually educate, engage and connect your people. 

Financial wellbeing workshops work to empower employees by providing them with essential knowledge and tools to manage their finances effectively, reduce stress and make informed financial decisions.

3. Offer Financial Planning Advice

It’s important to emphasise the importance of both long-term and short-term financial planning, and how saving money in the short term can help to lead to long-term financial wellbeing. Try running a real-life example of budgeting to show employees how regular short-term budgeting can lead to significant savings in the long run. 

It’s also wise to offer advice about financial debt, as many people who are working to improve financial wellbeing might be struggling with incurred debts.

4. Introduce Employee Benefits Discount Platforms

Help your staff make their income go further with an employee discounts benefit. It is an easy and simple way to provide savings on everyday shopping—from supermarkets and utility bills to special treats, maximising your staff spending power and stretching their monthly budget.

5. Explain the Benefits of Salary Sacrifice Schemes

Introducing the right salary sacrifice staff benefits to your workforce can enable them to spread the cost of unexpected purchases, such as replacing a washing machine or refrigerator. Employees can also plan home and electronic purchases with less financial stress.

6. Offer an Effective Employee Assistance Programme (EAP)

As staff financial wellbeing​, or lack thereof, can be a major cause of stress and anxiety for employees, it’s important that they have access to mental wellbeing support services such as an effective Employee Assistance Programme (EAP).

If your organisation already has an EAP offering, audit it and ensure it’s not just a tick-box exercise. Is it led by clinicians? Does it include debt advice, self-help workbooks, 24/7, 365 telephone helpline and face to face counselling?  Also, ensure you are regularly signposting your people to this essential health and wellbeing tool.

7. Communicate and Promote Your Financial Wellbeing Tools

This is perhaps the most important step—if you don’t promote your financial wellbeing programme, no one will know it exists! 

Communicate, communicate and communicate some more—if your employee benefits platform has a communications hub, utilise it for regular updates to help create a buzz. An active and tailored financial wellbeing programme will engage your people and your organisation will soon hopefully see productivity and morale increase as a result.

To support employers across the UK, we have a range of staff benefits that can help improve employee financial wellbeing, including Lifestyle Savings, Payroll Pay® on Home and Electronics, Cycle to Work, Car Benefits and Health Cash Plans.