According to the CIPD, one in four UK workers report that concerns about money affect their ability to do their job. Supporting employee financial wellbeing is therefore not just something ‘nice’ for companies to do, but something which can produce tangible improvements for the business. 

What exactly is financial wellbeing?  

Financial wellbeing isn’t just about having enough money to pay the bills, it is about knowing you won’t immediately lose your home if you lose your job or have an accident, it’s about not simply keeping your head above the water each month and instead being able to save and plan for the future.  

The UK’s Money and Pension Service defines financial wellbeing as:

“[being] about feeling secure and in control. It is knowing that you can pay the bills today, can deal with the unexpected, and are on track for a healthy financial future. In short: confident and empowered.”. 

Why should employers support employee financial wellbeing? 

At the most basic level, as employers, you provide your employees with the means to pay the bills and live their life. If your employees are struggling financially and their overall financial wellbeing is poor, this will negatively impact their productivity at work. 

The productivity of those suffering from poor financial wellbeing can be affected by a host of symptoms that can crop up, such as:  

• Higher stress and anxiety levels 
• Poor mental health 
• Sleepless nights 
• Reduced cognitive function (decision making) 
• Absenteeism 
• Troubled relationships with colleagues 
• And much more… 

Employees who are experiencing these symptoms will not be happy, engaged, productive members of the team. Poor productivity will not only impact their workload, but may impact their fellow team members, co-workers, internal company processes, clients and anyone else interacting or reliant on them! 

Additionally, those suffering from poor financial wellbeing are more likely to look for a new job – increasing employee turnover and recruitment costs. 

As a result, employers have a clear business case to support employee financial wellbeing. By supporting and improving the financial wellbeing of your employees, you can create a more positive, productive workplace filled with employees who are more motivated, engaged and happier. 

How can employers improve employee financial wellbeing? 

The most obvious way for employers to improve the financial wellbeing of their employees is, of course, to give everyone a pay rise. However, we know it is not always that simple or that easy – especially as so many small businesses are now feeling the pinch. 

Meaningful action does not always need to be costly, some low-cost ways to improve employee financial wellbeing include: 

• Better communication of existing employee benefits – are they being used? 
• Implement an Employee Financial Wellbeing policy 
• Ask your pension provider about any financial wellbeing or financial planning clinics/resources they may be able to provide 
• Ensure salaries are being paid correctly and on-time 
• Train managers to provide better signposting to benefit schemes 

The My HR Hub team can provide employers with employee benefit programmes designed specifically for small businesses, company-wide financial wellbeing and health and wellbeing policies, line manager training, advice and much more.  

Get in touch through our website today to set up a free 30-minute consultation with one of our experts.