Being financially secure can be defined as feeling comfortable to manage your financial situation today, as well as planning for the future and anything unexpected that crops up along the way. Due to Covid-19, there has been an increase in unemployment rates, workers on furlough and those not being able to work due to health reasons. A large 29% of Brits fear for their families financial position in 2021 leading to money worries for many.
Financial stress is a key cause of mental health problems and takes a huge toll on mental health leading to stress, anxiety and depression. The impacts of financial worries combined with poor mental health can lead to numerous problems that trickle into the workplace; absenteeism, lower productivity and poor quality work. This takes a huge toll on employers, which is why it is important to support your employees through financial worries. 62.5% of employers believe employee financial wellbeing is their responsibility yet they admit they could do more to help out. So, how do you approach employee financial worries?
It can be overwhelming as an employer to know how to broach financial worries and where to start in creating a framework to offer support. It is crucial to create a financial wellbeing plan in the workplace that offers a structured support system comprising educational tools, preparing for the future and dealing with stress and anxiety. Make sure you share it with your employees so they know how they can access support whenever they need it.
After creating a financial wellbeing plan you need to encourage a culture of open communication. Ensure you have regular catch-ups with your employees that allow them to share how they are feeling and to share any financial worries they may have. This could take the form of a weekly one to one and check-in. Encourage your employees to share their concerns and signpost them to the process and plans you have in place to support them with their financial worries.
4 out of 5 employees in their early career would like more financial support and advice from their employer. Offering training and workshops to help your employees manage their finances is a great way to provide education that will last a lifetime and help limit financial worries. Encourage your employees to learn how to build short and long term financial goals, save money and budget effectively as well as recognising how to manage external financial pressures. Financial support training can take the form of workshops, webinars, resources and videos. Make the most of technology and keep all your resources in an easily accessible place for your employees to access.
As well as offering financial education and advice it is a good idea to provide mental health support to your employees. This way they are better equipped to deal with any issues life throws at them and can learn to manage their money worries in a constructive way that won’t impact on their work. Take a look through our recent blog post on offering mental health support in the workplace and the health and wellbeing programme we provide.
When was the last time you did an audit of your employee benefits? It might be time to take a look through the packages and perks you offer as a company. You might discover not many people use certain benefits or take advantage of them. It could be a case of better communicating the employee benefits you provide, whether that be travel passes, childcare subsidies or private healthcare packages. Equally, you may discover the employee benefits you offer don’t cater well to your workforce, and you can offer more suitable alternatives. Finally, check in with what your competitors are offering and ensure you are matching their benefits.
Talk to your employees about your financial wellbeing plan and ask them to give constructive feedback on the types of information they would find helpful. This can help you tailor workshops and educational support to their needs. Keeping communication open is vital to establishing a great financial wellbeing plan.
Get in touch with us today for additional information on how we can help your business with financial wellbeing programmes and mental health support.
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