31% of employers plan to introduce a financial wellbeing programme in 2018, but is it enough?

The Employee Wellbeing Research 2018 found that 60 per cent of UK chief executives identify mental health as a priority, yet just 16 per cent have a defined mental health strategy. And of the companies that don't have a strategy, 37 per cent plan to introduce one in the next 12 months.

Financial wellbeing has a major influence on employees' mental health, and, consequently on their performance at work.

The biggest worry

Neyber's Financial Wellbeing report for 2017 found that financial worries are employees’ biggest concern, with 33 per cent citing this as their biggest worry, above health on 29 per cent.

So, it’s quite surprising that REBA’s report shows a relatively small increase in the proportion of employers with financial wellbeing programmes – up from 47 per cent in 2017 to 52 per cent in 2018 – bearing in mind its impact on employees’ and their performance. However, it's very exciting and encouraging to see that a further 31 per cent of employers plan to introduce a financial wellbeing programme in 2018.

Neyber co-founder, Monica Kalia, commented: “There’s still a clear disparity between employee need and what employers are offering when it comes to financial wellbeing. Times are getting tougher for employees across all demographics, and whilst there is some understanding in the HR community around financial wellbeing and its impact on wellbeing and productivity, there’s definitely room for improvement.”

There are signs that employers are taking the issue more seriously and realising the benefits, not only to their employees’ life and health, but also to their workplace culture, employees’ ability to perform their role, and, ultimately the bottom line.

The wider economic picture

Millennials entered the job market when wages had been heavily impacted by what happened following the financial crisis of 2008. From 2009 to 2014 wages fell consistently in real terms, measured by inflation. Since then inflation has been low and wages have gone up by more than inflation, but still haven't caught up with pre-crisis levels in real terms, and since mid-2017, inflation has risen again, catching up with annual wage increases.

Employees also have to contend with the continued rise in house prices and the ability to borrow to buy a property against stagnant incomes. Historically, you can borrow up to four times annual income, but in many parts of the country this is not enough to be able to get a mortgage to buy a property without having a substantial deposit or help from the bank of mum and dad.

So, it’s hardly surprising that financial concerns are such a high priority for employees.

The mounting evidence for financial wellbeing

Another recent report from risk management consultants, Willis Towers Watson backs up the view that employers need to make employees’ financial wellbeing a higher priority.

Its, Global Benefits Attitudes Survey found 69 per cent of employers recognise they need to take an active role in helping employees' manage their personal finances, with 56 per cent claiming they plan to implement a financial wellbeing programme for staff within three years.

The survey found employees troubled by their finances are twice as likely to be in poor health as those who were not, which could result in higher stress levels, increased absence and low work engagement.

This article was provided by Neyber.