The importance of financial wellbeing in the workplace

We often hear about a person’s general wellbeing and things we can do to optimise our own selves. We tend to focus on emotional wellbeing and physical wellbeing, but rarely talk about financial wellbeing. Financial wellbeing is an important part of a person’s overall mindset and happiness with life in general.

Financial wellbeing in the workplace is a vital aspect to focus on, but one that is sometimes overlooked by employers. It is not uncommon for employees to face financial stresses within their life and especially now, with the impact of coronavirus and furloughed staff, they can find themselves struggling financially but not knowing how to get help. For more information on how to manage coronavirus and communications within your workplace, check out this link to one of our blogs.

Commercial cost to business

There is in fact a commercial cost to a business when staff have financial worries, lacking the ability to save for retirement and afford holidays. There is a link between employee debt and lower productivity overall. This is increasingly being recognised by employers and they are now taking action to help those employees, whether with financial incentives or knowledge on how to get help with debt or saving for retirement.

It is quite common for employees to struggle to understand the financial issues they may find themselves in and the financial benefits on offer within the workplace. By having a comprehensive wellbeing strategy in place, that includes financial wellbeing, it can help equip your staff with the knowledge and tools to better the employee financial wellbeing, which in turn will help lead to improved productivity.

It is crucial that employers first understand the needs of their workforce before implementing a wellbeing programme designed around finances. Each employee will have their own financial priorities, whether it is trying to obtain a mortgage, retirement plans, debt management or struggling to save. Once you understand what your employees are struggling with financially you can then tailor programmes and saving initiatives which can be further developed to meet the needs of each individual. This then gives your workforce the tools to develop their own financial toolkit; all with the aim to better their financial wellbeing so that when they are at work, they are happier, healthier, and more productive.

An interactive approach

One of the better approaches to delivering the a suitable programme is to make it interactive, helping to create a deep and meaningful understanding for all employees. Seminars are a good way of reaching out to employees and educating them as well as one-to-one sessions. If this is not within reach of your company to administer, then webinars and webcasts also provide useful tools, where they can be tailored to your company and offer micro bites of information that can also be revisited.

Some employees will feel very uncomfortable talking about their financial situation, so it is very important to remain confidential with all information expressed from employees, so they feel safe to share and learn.

A well-engineered financial wellbeing programme, that is delivered successfully across all employees groups, is mutually beneficial to both employees and employers.

For more information or help in implementing strategies and wellbeing practices contact us today.