14 Nov 2019

Seven steps to make financial health a priority in the workplace

There were many discussions about financial wellness on Mental Health Awareness day last month – an area that’s being spoken about increasingly, as inclusivity becomes more of a focus for companies across the UK. Many organisations aim to support employees’ physical and emotional health, but what about financial health, and does it matter within the workplace?

Money and mental health are inextricably linked. People with poor mental health can find money management challenging, and in turn, anxiety about money can have a knock-on effect on mental health.

The Close Brothers/CIPD Financial Wellbeing report revealed that money worries affected the ability of one in four workers to do their job. One in ten said they found it hard to concentrate or make decisions at work due to money worries, and 19% have lost sleep worrying about money.

Diagnosing what’s causing financial stress helps you tailor a financial wellbeing programme that meets the unique needs of your workforce; organisations need to look at employee segments who are struggling – there’s really no room for a ‘one-size-fits-all’ approach.

The good news is that there is plenty that businesses can do to help improve employee financial wellbeing.

As a starting point, here are some useful steps in providing financial wellbeing in the workplace.

Create the right culture – as with any wellbeing strategy, a successful financial wellbeing programme starts at the top. Buy-in from senior staff is essential in creating a culture where individuals perceive work as a place where they can improve their wealth, rather than just getting paid.
Understand the real financial problems facing your workforce – via a diagnostic tool and/or a survey. Getting a thorough understanding of what’s worrying employees is much more effective than introducing a ‘one-size-fits-all’ tick box exercise.
Introduce financial education – this helps to raise employees’ awareness of money matters, and builds their confidence. When it comes to handling the complexities of their financial lives, they will be better prepared.
Mix and match your learning – people learn in a variety of ways, and may also want to access education, advice and support in different forms. Although online services can be great at laying the groundwork for financial wellbeing, nothing beats face-to-face conversations for really understanding an individual’s needs.
Provide access to financial advice – in some instances, personal one-to-one advice is really important, to give employees some extra help, or to support them in major one-off decisions such as how to make the most of their retirement savings.
Don’t forget your high earners – while employees who are struggling financially might seem most in need of a financial wellbeing programme, it affects everyone. The challenges might be different, but all age groups and earning brackets have a need to improve their financial wellbeing.
Benchmark, measure and report – by benchmarking activity, it is easier to make the case for future investment and broader programmes. Identify appropriate criteria such as Net Promoter Score and employee satisfaction to measure success before introducing any new campaign, and have a mechanism for feeding results back to senior management.