How HR Can Help Nurture Financial Wellbeing For Their People

Today's economic landscape is fast changing, with ramifications for all our Talent, whether they are employees, contractors or fractional workers. There is currently a cost of living crisis which is impacting our people, their families and their own wellbeing. Whilst the focus for many organisations has been on retention and engagement, these are impossible if our people are having financial difficulties. Their wellbeing extends far beyond job satisfaction and work-life balance.?

Financial wellbeing plays a pivotal role in each workers overall happiness and productivity. As HR professionals, we need to recognise this reality and take proactive steps to support our people during difficult economic times.

One of my recent podcast chats was with Jamie Lawrence , Head of Marketing at Bippit? , a financial coaching and wellbeing organisation, and we talked about how employers - and HR professionals - can better support their people (and their families) to help nurture their financial wellbeing.?

Understanding Financial Wellbeing

Firstly we need to recognise that Financial Wellbeing goes well beyond the mere accumulation of wealth, and encompasses a sense of security and control over one's - and their families' - financial situation and stability. In other words, it's more than the salary (and bonuses) you may pay an employee.

It's essential to grasp the wider nuances of financial wellbeing to effectively support employees, and this understanding involves recognising that financial concerns impact mental health, job performance, productivity, and overall morale and therefore engagement.

Building a Supportive Culture

Creating and fostering a supportive culture around financial wellbeing is paramount. HR professionals can initiate the conversations around financial wellness that can help break the taboo surrounding money matters. By openly discussing financial challenges, and offering resources for improvement, organisations can create an environment where employees feel empowered to address their financial concerns without fear of judgment.

Tailored Support

Part of creating a supportive culture is recognising that each employee's financial situation is unique, so it’s important to offer tailored support that takes account of individual circumstances. This can involve providing access to financial education workshops, sharing budgeting tools, or even providing one-on-one counselling sessions. By understanding the specific needs of their workforce, HR professionals can help create benefits and reward packages that address the most pressing financial concerns, such as student loan assistance, childcare costs or even retirement planning guidance.

Promoting Open Communication

Encouraging open communication about financial matters can help alleviate the stigma associated with money struggles. HR professionals can facilitate discussions or create forums where employees feel comfortable sharing their challenges and seeking advice. Maybe supporting the creation of an Employee Resource Group to help those who are really struggling or in need of financial guidance. By promoting transparency and empathy, organisations can foster a culture of trust and support, helping employees to proactively manage their financial well-being.

Utilising Technology

Technology can be a powerful tool in promoting financial wellness. HR professionals can leverage technology platforms to deliver educational resources, interactive tools, and offer personalised financial guidance to employees. Whether through mobile apps, online portals, or virtual workshops, technology can be used to offer scalable solutions to support employees' financial journeys.

These strategies can bring significant benefits, both for employees and the business as a whole. By prioritising financial wellbeing, HR professionals can enhance both employee engagement, retention, and improve overall satisfaction data. Moreover, supporting employees through challenging economic times is the right thing to do, and can contribute towards creating a resilient and adaptable workforce.

HR can and should be in the driving seat of their organisation’s strategy, particularly in times of economic uncertainty. By understanding the complexities of financial wellness, fostering a supportive culture, offering tailored support, promoting open communication, and leveraging technology, they can empower employees to take control of their financial futures, creating workplaces where financial wellbeing is a tangible reality for all their people, at all levels.

You can hear my full conversation with Jamie Lawrence on this episode of the HR Means Business podcast

Talent Challenges of Global Growth

I took part in an interesting webinar chat with IRIS Software Group this week. Their research showed that over 70% of companies have growth plans for 2024,? but the biggest problems they had to overcome before growing were staffing and recruitment challenges, particularly around Global Talent Management , budgetary concerns and being able to respond to the expectations of the emerging Gen Z workforce. We talked about budgets, Global payroll considerations, skill shortages and the concept of Total Talent Thinking, supporting people in their growth and in their wellbeing, as well as incentives, hybrid working and having a great employee experience.

There’s still time to can catch up on the conversation and watch the webinar on this link .

Stats of the Week - Motivation, Goals and Burnout

Are your workers motivated? How do they feel about their performance goals? And how many are looking for a new role?

Interesting research from Dayforce (which was recently showcased by Alexandra Nawrat from UNLEASH ) came from a survey of almost 9,000 employees and found just over two-thirds admitting that they were thinking of looking for a better opportunity elsewhere. For Millennials and Gen Z employees, this increased to almost three quarters.

The main issue is performance goals. Failure to achieve them leads to increased stress, and for around 40% increases their desire to move elsewhere. A third believed that their productivity is lowered if they have goals they don’t feel are achievable and a similar number say their trust in leaders is lowered by unobtainable targets.?

Achievable goals are important, unachievable goals cause dissatisfaction, poor engagement, and burnout. 81% of those surveyed felt burned out, and less than half believed that their leaders were aware of the symptoms and impact of burnout.

How realistic are you organisation’s performance goals?