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19 Jul 2018

Think financial worries are an employee problem? Think again

Why should businesses care if their employees are worried about money? Surely employers give employees a salary and a pension, then it’s down to them to manage it themselves. Don’t companies have enough financial worries of their own without taking on their staff’s issues too?

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While it might be tempting for employers to take a hands-off approach to employees’ financial wellbeing, doing so could be seriously bad for business. 

Neyber’s DNA of Financial Wellbeing (July 2018) research found that 63 per cent of employees have been negatively affected by financial worries in the last year. Nearly half (45 per cent) said that money concerns affect their performance at work, and 10 per cent said that they couldn’t focus during the day. More than a quarter lost sleep, 20 per cent felt depressed and 35 per cent said that they had generally felt stressed about money in the last year. 

Imagine how workplace productivity might increase and absence decrease if employers could help their staff resolve those issues.

Employees want financial support

Employees are crying out for more help. More than half of those surveyed said that they would like more information or advice about their finances. But while only 32 per cent of employees say their employer cares about their financial health, 50 per cent of employers believe that they care.

There is a clear gap between what employees and employers think when it comes to financial wellbeing. Even if businesses think they are being supportive, staff clearly think otherwise. But the good news is that there are plenty of ways that employers can narrow that gap. Here are three ways to help:

  1. Know your workforce. Financial wellbeing doesn’t have a one-size-fits-all approach. Understanding your workforce and their needs is essential to deliver the right help and support. There are many different ways of doing that, from holding focus groups, to using data from an employee assistance programme to tell you more about the problems staff are facing. 
  1. Communicate clearly. Perhaps one of the reasons why employees think their employer isn’t giving them support is because they don’t know what’s available to them. Make sure that communications about financial wellbeing and benefits are clear and appropriate.
  1. Be inclusive. Different staff will have different needs. Some will require support with debt issues, others might want to know about mortgages, or how best to save for retirement. Make sure that everyone can benefit from the help on offer – and don’t assume that financial wellbeing is only for lower-paid workers. Workers at all levels struggle financially.

Employers can no longer ignore one of the biggest sources of worry for their workforce. A commitment to supporting staff with financial wellbeing is also a commitment to better engagement and productivity at work. 

Read Neyber’s DNA of Financial Wellbeing report.

This article was provided by Neyber.