Top ways to secure employees’ future financial wellbeing
The impact of financial insecurity
Physical and mental symptoms that can accompany financial insecurity may inevitably impact performance in the workplace. Insomnia and anxiety lead to fatigue which reduces an individual’s ability to focus and concentrate. There’s also considerable time spent by employees needing to resolve issues which arise from their money worries.
Current levels of response
Despite the risks of financial insecurity to organisations, only 19% are taking a strategic approach to employee financial wellbeing. An underwhelming 13% of the organisations surveyed by CIPD and Simplyhealth for the Health and Wellbeing at Work 2021 research believe an adequate budget has been allocated to improve the situation, and the last two years have seen little change to pay, benefits and financial support.
Overcoming barriers at senior management level is one of the essential strands to fulfil the CIPD’s ambition that every employer should have a financial wellbeing policy in place, as set out in its Reward Management Survey – Employee Financial Wellbeing (Feb 2021).
A financial wellbeing strategy doesn’t have to emerge as a stand-alone policy. Weaving it into other wellbeing initiatives which echo the vision, purpose and people of the business, maximises the potential impact.
Below are our tips on how to secure the future of financial wellbeing in your organisation.
Explore
Before decisions are made about the future of a financial wellbeing strategy, it’s important to dig into available data, survey opinion and expose gaps in employees’ knowledge. This will provide a good understanding of what money worries are at the forefront of people’s lives.
Age profile, income level and information about domestic circumstances complement anonymous surveys and sit neatly alongside the internal analysis of benefits and policies.
Assess
Assessing policies and the benefits and reward package currently on offer against the backdrop of information gathered during the ‘explore’ phase sets the scene for change. From pay to pensions, employee assistance programmes (EAPs) and cash plans to shopping discounts – they all play their part in achieving financial wellbeing for employees.
Consideration could be given to letting employees choose how often they are paid. Temporary support measures for those struggling because of furlough schemes, having to shield or suffering from Long-Covid, will take the heat out of stressful circumstances. Even life insurance and critical illness cover can offer financial reassurance in an otherwise uncertain future. When it comes to voluntary contributions, negotiated bulk discounts provide valuable and welcome savings for employees.
Educate
An empowering way for employees to gain control over their finances is through educational programmes. Every episode and bump in the journey of life requires diverse and relatable information. From on-boarding new joiners through all the key life milestones, employees should be fully briefed in an engaging way about the financial benefits that have the greatest relevance to their circumstances.
Many benefits providers have developed interactive ways of connecting with their audience which boost product engagement and understanding. Taking full advantage of the educational materials and tools that they provide will be an advantage to employees.
Promote
“We are stronger when we listen, and smarter when we share.” – Rania Al-Abdullah, Queen consort of Jordan.
Quality, well-timed communication of the benefits and policies that are in place is essential. The pathway towards achieving a calm sense of control over personal finances and the benefits on offer may not always be obvious. Key to embedding financial wellbeing is engaging the audience and consciously promoting these links.
Specialist advice through clear signposting is essential to support serious money issues such as debt management, mortgage arrears or gambling addiction. Having an efficient EAP in place can be a good starting point, followed closely by the ability to direct employees to relevant organisations that offer professional assistance.
The final piece of the jigsaw
As much as mental health has become part of the day-to-day conversation and agenda, so must financial wellbeing.
Organisations have a responsibility to allocate adequate budgets so they can support and reassure their workforce when it comes to their money worries. Systems can then be put in place to begin the journey to explore, assess, educate and promote financial wellbeing.
But the final piece of the jigsaw must be the removal of harmful stigmas. Supporting people to feel able to talk about their money worries is possibly the biggest challenge faced by organisations. And when open and honest communication is encouraged – from the top down – genuine, implementable progress will be made for many financially stressed people. And that will make the future a brighter place for everyone.
You can find articles and further information on health and wellbeing strategies on the Simplyhealth Insights Hub.
This article is provided by Simplyhealth.
Supplied by REBA Associate Member, Simplyhealth
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