Why employers need to equip the workforce with better financial education
Employers have begun to set up financial wellbeing benefits and initiatives, such as educational tools to help employees learn how to better manage their finances, access to mortgage advice and debt services and workplace savings. Yet, with the ongoing cost of living making fewer headlines, financial wellbeing needs to remain a priority for employees.
Link between mental and financial wellbeing
The significant connection between mental health and financial wellbeing is well-known, with financial stress such as debt, unpredictable pay and working hours and managing unexpected bills contributing to an array of mental health conditions.
The good news is employers are taking action. Findings from REBA's Financial Wellbeing Research 2024, published with WEALTH at work, highlight that 70% of employers said the mental wellbeing of the workforce was driving change in their financial wellbeing offerings, the highest of all internal drivers.
In addition, 62% view a lack of financial literacy as a risk to the workforce while a further 28% highlighted not having access to appropriate workforce financial wellbeing support as a risk. Given the mental impact financial stress can have on an individual, there’s no surprise it remains high on employers’ agendas.
Employer role in employee wellbeing
There will always be a conversation about how much an employer should become involved in an individual’s private life. For financial wellbeing, the negative consequences are too hard to ignore.
For example, there’s a growing number of employees who will be unable to afford to retire due to inadequate pension savings. These employees could have several health conditions, meaning they can no longer do their job to the standard expected — not only damaging the employee’s own wellbeing but also leading to workforce planning issues and a loss in productivity to the employer.
Society does not equip people to make the challenging and complex financial decisions it expects them to, and employees are often making decisions unaware of the risk. Employers do not possess the magic key to bring down inflation, improve the cost of living or slow down the housing market, but they can provide fair pay, offer relevant benefits and initiatives to maintain employees’ wellbeing and productivity and boost their financial literacy.
This article was originally published in partnership with Mediaplanet, as part of the Employee Wellbeing campaign, launching in the Guardian and online.
