Why it's important to manage financial wellbeing at work

Money is something everyone has to deal with directly or indirectly on a day-to-day basis. For some people, keeping their heads above water financially can be a constant battle. Being in financial distress has been linked to reduced mental health and wellbeing.

Research has revealed the extent to which money worries impact workplace productivity in the UK with research carried out by the Chartered Institute of Personnel and Development (CIPD), showing a stressful financial situation restricts one in four workers from fully concentrating at work.

The study made several worrying assertions, particularly the tendency for men to withhold stress from employers. Less than a quarter of men surveyed said that they would vocalise money worries to their boss.

The demographic most affected by money worries were workers aged 18 to 24 year-olds. A third had reported a damaging effect on their work as a result of stress.

The research also found that workers earning high salaries were just as susceptible to money worries, with a fifth of those earning between £45,000 and £59,999 feeling strong financial anxiety.

From this research, we can see it is in an employer’s best interest to support an employee with financial problems as they will invariably struggle to focus 100% on their work, and may make mistakes or miss opportunities. The effect can be disastrous to any business, large or small.

So, how do you spot an employee in trouble?

Signs of financial stress

Money worries keep people awake at night—literally. Extreme fatigue during work is the most common visible symptom, with reduced cognitive ability making concentration and decision-making difficult.

The stress keeps employees off work, too. In a 2017 CIPD report, 8% of surveyed UK workers admitted to absenteeism, which works out to an estimated 17.5 million lost working hours—a staggering £120.7 billion hit to the UK economy.

So, it’s in both an employer and their business’s best interests to support any staff member who has a money problem.

But, like mental health issues, a social barrier often stops employees asking for help or telling someone that they’re struggling.

What can employers do?

An Employee Assistance Programme (EAP) can be a significant benefit to those at risk of falling into debt or struggling with their finances. Many EAPs offer debt counselling or advice services. It is important for employers to regularly remind employees about the specific services available from the EAP and how they can help them.

Employers could also consider offering lines of credit and advice on how to manage money or workplace financial education, providing the tools employees need for their own financial education. These classes focus on making the most of existing income through better money management and savings plans.

David Price is CEO of Health Assured, which provides EAP services for Legal & General.

This article was provided by Legal & General.