10 Financial Wellbeing Tips for Employers - employee wellness image

10 Financial Wellbeing Tips for Employers

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Money is the number one concern among employees regardless of salary, age or position. Poor financial wellbeing costs UK organisations in terms of presenteeism, absenteeism and retention, amounting to up to 17% of payroll costs.

The Employer’s Guide to Financial Wellbeing is regarded as the most comprehensive annual survey of employees’ financial health across the UK.  Now in its third year, it has become the go-to handbook for employers and HR professionals who want to deep dive into financial wellbeing.

Here are 10 financial wellbeing facts that have come out of the latest research:

#1 Some have benefitted from Covid, and some are worse off

According to the

According to the Bank of England a third (33 per cent) of employees have managed to save more money because of Covid-19. However, 16 per cent of employees have ended up saving less.

However, once again there are big differences between those with low financial wellbeing and those with good financial wellbeing: the former being 2.6 times more likely to be saving than the latter. 

#2 Poor financial wellbeing is significantly costing UK organisations

The cost of poor financial health related to areas such as presenteeism, absenteeism and retention is huge and equates to between 13 and 17 per cent of payroll costs. UK organisations continue to suffer the impact of poor financial wellbeing of their people. 

#3 Money worries remain at the top of the list

Money continues to cause the most worries for the majority of people. 26 per cent of UK employees are worrying about money on an ongoing basis. This far outweighs worries about careers (22 per cent), health (18 per cent) and relationships (14 per cent). Perhaps surprisingly, even during a global health pandemic, money continues to be the largest source of stress in the majority of our lives. 

#4 The demographic factors which make a difference to financial health

How much someone earns, where they live and what kind of industry they work in actually make very little difference to how financially healthy someone is. However, certain groups such as women and employees from black ethnic backgrounds are left more vulnerable to poor financial wellbeing. 46 per cent of black women suffer from money worries, compared to 18 per cent of white men.

#5 Employees in high-level, well-paid positions are susceptible to poor financial wellbeing

A third (33 per cent) of C-suite executives and 30 per cent of managers have poor financial wellbeing. Surprisingly, those that earn between £10-30k per year have almost the same level of financial worries as those earning over £90k per year (27 per cent vs 24 per cent). Poor financial wellbeing is therefore not about income or seniority.

#6 Poor mental health and poor financial health continue to go hand in hand 

Those that have poor financial health are 3.7 times more likely to be suffering from anxiety and 5.3 times more likely to be feeling depressed and finding it hard to carry on with daily life. 

#7 Providing financial assistance to loved ones is putting increasing strain on those with poor finances

Those with poor financial wellbeing are 1.7 times more likely to provide financial assistance to loved ones than those with good financial wellbeing. This is despite 24 per cent of them having to borrow money themselves to help others.

#8 What financial help employees want depends on their financial wellbeing 

When it comes to paying bills and borrowing money, those with poor financial wellbeing are three times more likely to want help from their employer than those with good financial wellbeing. 

#9 Money is the last great workplace taboo

The majority of employees still don’t feel comfortable talking or asking for help with their finances. 81 per cent of employees don’t feel comfortable talking about money at work and 71 per cent of employees don’t feel comfortable asking for help with financial matters from their employer. 

#10 Some employees are considering reducing the amount they’re paying into their pension 

The Covid-19 pandemic has made some employees feel they can’t focus on long-term financial planning. Those with poor financial wellbeing are now three times more likely to consider reducing the amount they are paying into their pension plan than those with good financial wellbeing.

As an employer or HR manager what can you do?

A good starting point is to provide financial education and resources for your employees. A programme offered to everyone reduces the stigma of asking for help. Fearless Finance provides a full or half day face to face workshop or online programme designed to eliminate money worries and allow participants to take back control of their finances. Please get in touch for prices and availability.

If you found this post useful you may enjoy the Fearless Finance Podcast.

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