Financial wellbeing and education: How the right communication tools can help your employees take charge of their finances
Financial wellbeing – defined as employees feeling happy and secure about their finances – is perhaps the final frontier of employee wellbeing. Until recently, this vital issue has been overlooked by employers, who have typically focused on physical and mental wellbeing. But, in light of some eye-opening stats, it’s no wonder companies are beginning to offer financial education and help employees take control of their money:
- 46 per cent of employees worry about their finances (1)
- 33 per cent say financial worries are their biggest concern, ranking higher than concerns about health or work-life balance (2)
However, employees’ financial concerns might include anything from saving for a house deposit to paying out hefty university fees for their children. Financial wellbeing and engagement therefore needs to extend beyond the company’s package to cover general finances.
Employers can tackle this in two main ways:
- Financial education, designed to raise awareness and help employees manage their money
- Practical support, such as offering ISAs to staff or providing loans to help first-time buyers
- Stress costs the UK economy over £6 billion every year (3)
- 49 per cent of stressed employees take sick leave, compared to 36 per cent of more relaxed staff (4)
- 1 in 5 employees lose sleep over money and believe their financial circumstances affect their performance at work (5)
- 17.5 million working hours are lost each year in the UK because of absence related to financial stress (6)
It’s also vital that financial wellbeing be seamlessly incorporated into your other wellbeing offerings. Remember, when it comes to communicating employee wellbeing, staff don’t want to be bombarded with messages, nor do they want multiple platform silos:
- 68 per cent of employees want seamless access to all of their benefits in a handy ‘one stop shop’ solution (7)
The need for joined-up communications means financial wellbeing must become an extension of the work you’re already doing to look after employees. This was certainly true for a global financial services organisation who asked us to deliver financial education to its staff. This included:
- Interactive PDFs and print collateral to help employees understand what was available and make more informed decisions
- Surveys to understand more about employees’ concerns and needs
- Recommendations for management to help them improve their offering and determine next steps
(1) Financial Well-being: The last taboo of the workplace? – Barclays
(2) The DNA of Financial Wellbeing 2017 – Neyber
(3) Work Related Stress Costs UK Economy Nearly £6.5bn Each Year – Recruitment Buzz
(4) Mind, Body and Payroll: Selling Financial Wellbeing Solutions – Pearlfinders
(5) Financial well-being: the employee view – CIPD
(6) The DNA of Financial Wellbeing – Neyber
(7) 51% would like a wellness allowance to support a personal approach to wellbeing – Employee Benefits