Financial Wellbeing at Work #2 of 4

This is the second in a mini-series of short articles about financial wellbeing. If you haven’t yet read the first, take a look here: ‘What is financial wellbeing?’.

Financial wellbeing is a difficult, yet very relevant, topic to talk about given the current employment landscape and financial challenges facing many people across the globe. For this very reason, I feel it’s important to highlight financial wellbeing at work and offer some guidance to employees and employers alike.

Dealing with financial pressures

Now more than ever many people are feeling anxious about their personal finances. They may have been furloughed, been made redundant, or taken a pay cut.

The uncertainty makes people feel vulnerable and worried about the security of their job and how they will pay for their mortgage and bills.

This enormous stress and pressure can make it difficult to concentrate at work and to perform your best, which further fuels feelings of anxiety. Matters that would normally be considered minor can now seem overwhelming and amplified during these times.

How can employers help?

Research shows that around 25% of the UK workforce experiences financial insecurity as a result of being in debt, their working arrangements, or being unable to meet essential living costs such as rent and bills (1).

As individuals there are steps we can take to be mindful of our financial wellbeing and proactively seek to improve it. However, employers also have a key role to play in supporting employees with their financial wellbeing, here are just a few things employers can do:

• Education – invite financial wellbeing specialists to give seminars and presentations to employees. This will give them food for thought and send a positive message that it is okay to talk about our financial fears.
• Provide easy access to advice, support and resources.
• Ensure HR managers are properly trained and well-equipped to deal with matters arising from financial insecurity.
• Offer savings schemes – support employees in saving regularly and make it easier to do so by partnering with a financial services provider that can offer such services. Savings will be set aside automatically from their salary each month, making it seamless and easy to save for unexpected events.
• Pay for work expenses upfront to ensure that employees are not excluded from social and work activities if they are unable to afford them.
• Consider purchasing group income protection insurance – in the unfortunate event that an employee is unable to work due to a serious illness or injury, they will continue to receive income until they’re able to return to work. The terms and conditions of policies can differ depending on the provider and the product you choose.

Thank you for reading, please keep an eye out for the 3rd article in my mini-series coming soon!

(1) Overstretched, Overdrawn, Underserved: financial difficulty and mental health at work, Money and Mental Health Policy Institute, May 2017

Kanishk Swarup | Financial Adviser | [email protected]