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Three ways for employers to help break the money stigma
New research by financial wellbeing platform Wagestream finds that, despite the progress that’s been made in encouraging employees to open up about mental health issues, most employees remain reluctant to talk about money.
More than two-thirds (76%) of employees surveyed, who privately acknowledged money worries had worsened their physical or mental health, have not told their employer. The impact is profound: delays in seeking help tend to make solutions more complex and longer-lasting and the reluctance to talk may mean employers are unaware of the scale of financial wellbeing issues and therefore less likely to take positive action.
Just because employees have not shared their financial woes with you, it doesn’t mean they are coping with the burden of navigating the current economic crisis. Close to all UK employees (96%) have seen their living costs rise and, as a result, 70% now worry more about money. More than half (52%) of the workforce want their employer to help over the next three months.
Despite this reluctance to talk, employers can help tackle the money stigma to help improve the financial wellbeing of UK employees.
Cut the time people take to seek help
Many charities that offer support to for poor financial wellbeing say that people wait a long time before seeking help.
This is echoed in Wagestream’s research. More than one-third (35%) of UK employees say they haven’t told their employer about their money worries because they don’t want people to think they’re struggling. A further one-third (31%) say it’s due to shame or embarrassment.
These are deep-seated cultural issues and unfortunately they affect behaviour, meaning more people suffer. So when they do seek help, often the solution is more complex or requires more time. By tackling money stigma, employers help end the cycle of suffering in silence.
See financial wellbeing differently
One of the best outcomes of the work on the mental health stigma is that people increasingly view mental wellbeing as a spectrum. We have good days and bad days and everyone needs help sometimes. Unfortunately, black and white thinking still defines much of money talk, with phrases like ‘good with money’ and ‘bad with money’ commonplace.
Again, this makes it harder for people to seek help for fear of being negatively labelled. Employers who share vulnerable stories, especially senior leaders, embolden people to share their own story and treat any situation as fixable.
This is important, because it underpins many positive financial behaviours. Saving, for example, is not always easy. Black and white thinking can encourage people to think that unless they display optimal savings behaviour, there’s no point in saving at all.
Three ways for employers to help
1. Talk about money: It’s easy to talk about money. There are so many headlines that link to money and so many macro events, such as the budget that can serve as conversation openers. This helps to normalise the conversation.
2. Share stories: people need to understand that people like them are on journeys like them. This is how we overcome stigma and open up the conversation. Everyone has a financial story and if you look closely enough, you’ll find people that are willing to share.
3. Train Money Champions: line managers in particular may be concerned about how to talk about money and will avoid conversations with the team. Mental Health First Aiders helped tackle the mental health stigma by acting as beacons of inspiration and enthusiasm, with the skills and confidence to start conversations. The same lessons can be applied to money.
Wagestream’s State of Financial Wellbeing Research helps organisations deliver financial wellbeing to their employees through insights into what’s working and what’s not working for employees.
Supplied by REBA Associate Member, Stream (FKA Wagestream)
Wagestream’s financial wellbeing platform makes work more rewarding for 3 million people.
