Supporting financial wellbeing

Supporting employee wellbeing should be a focal point of all businesses, and not just where it has been impacted by work. Employees may require support for a wide variety of reasons, some more obvious than others. These could include mental health issues, financial worries, addiction, divorce, fertility issues, menopause, domestic abuse, health concerns, family problems, and many more. Whilst the law may influence how employees are supported with some of these areas, for others, it is down to the individual business.

Delving into financial worries more specifically, a recent study by City AM found that only 30% felt they were comfortable or confident in their financial situation.

Financial Wellbeing

April sees a further exacerbation of the financial pressure employees may be feeling, with household bills increasing across the board for most. However, it isn’t just employees feeling the pinch, businesses are fighting extra hard to protect their bottom line in the face of rising costs. So, that begs the question, how do you support your employees without breaking the bank yourself?

Is a pay rise the only solution?

It could be easy to jump straight to the conclusion that paying an employee more is the way to support their financial wellbeing, however, this may not be possible or affordable for all business. If this is the case, it could still be a good idea to ensure any pay review schemes are transparent and clearly communicated. This way, employees will know exactly what they need to do, if anything, to increase their income.

There are many other low-cost ways that as an employer, you can support your employees’ financial wellbeing. This could start by placing a focus on providing information, guidance and coaching on how to manage and maximise their finances. This can be achieved through workshops or sessions on budgeting and saving, or signposting to debt support services. If you have a budget for supporting employees but it doesn’t quite stretch to pay rises, then you could consider incentives such as free or discounted food, or discounted train tickets or car parking.

Whatever you decide to offer in the way of support will be individual to your business, however you should consider outlining the support available in a Financial Wellbeing Policy. This will give employees the reassurance and confidence they need to access any support if required, potentially removing the need for an uncomfortable conversation for the employee seeking support.

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Do I need a financial wellbeing policy?

Sensitivity is crucial

Whatever you look to introduce, you should remember that an individual’s financial circumstances can be a personal and sensitive topic. Creating a safe environment where employees feel they can come and talk to you about their situation, without fear of judgement, will be key to being able to signpost the best support. However, not all employees will be comfortable talking about or sharing their own situation. Taking advantage of an Employee Assistance Program could provide these individuals with personal, confidential, and tailored support for their own needs at no cost to them.

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How does an Employee Assistance Program help my employees?

Supporting employee financial wellbeing is just one strand of support you can offer and should be offered in conjunction with wider packages that aim to provide an environment supporting both physical and mental wellbeing.