08 Dec 2023

Ways to address financial resilience for today and tomorrow

Financial concerns can have a detrimental impact on mental and physical health, supporting financial wellbeing is therefore key to maintaining performance at work

Financial concerns can increase the risk of poor mental and physical wellbeing.

Recent research for the Money & Pensions Service (MaPS), found that 57% of people who had experienced a mental health problem in the previous three years said thinking about their financial situation made them feel anxious.

Those who had experienced mental health problems in the last three years were:

four times more likely to be behind on important bills
four times more likely to have borrowed money to pay debts
three times more likely to run out of money for food and bills.

The need to talk openly

Money worries and poor mental wellbeing often go hand in hand. Despite this, many people across the UK generally struggle to talk openly about money.

YuLife and YouGov confirm this. Their research shows:

only one in five (21%) people feel comfortable talking about financial worries with their employer
a quarter (24%) say their workplace doesn't do enough to explain the financial support that is on offer.

Incentive for organisations

The YuLife research confirms that 80% of workers say stress around their personal finances affects their performance at work.

Providing more support, and signposting this more clearly, will also give organisations an edge in the competition to recruit and retain talent. This research shows when considering whether to move or stay, 61% of employees factor in their company’s ability or willingness to support their financial wellbeing.”

Ways to improve and support financial resilience

Organisations need to be equipped with tools and resources to help meet employee expectations and promote the resilience and wellbeing of their teams.

Organisations should aim to:

create an open culture that allows employees to feel comfortable discussing their mental health. This may include upskilling line managers and signposting information, resources and employee assistance programmes
equip line managers with the training and resources to support their teams. Effective leadership builds effective teams
consider the variety of needs for different generations in the workplace. For instance, in terms of financial support, Gen Zs will be looking for information and support around student loans and getting on the property ladder. In contrast, team members approaching retirement will be looking for ways to protect and maximise their pension
help teams make the most of hybrid working to protect their work-life balance
communicate corporate goals clearly, and make sure team members not only understand what is expected of them, but also feel valued
put people into the right roles, and encourage them to suggest changes if they believe they could be deployed more productively
discourage employees from checking emails or working outside business hours, unless it’s by choice. If possible, allow flexible working for those who prefer it
promote good mental and physical health across the business, and encourage employees to seek help if they are struggling.

Purpose provides stability

Employers can’t predict or protect against many of the challenges which lie ahead. But by providing purpose and a sense of community within the workplace they can provide a supportive environment which will help teams navigate this new world.

For more on this topic, Bupa experts share the latest insights on key health and wellbeing trends and resources to help businesses build actionable plans that really make a difference.