Astronomical inflation and the cost of living crisis are phenomena touching vast numbers of employees in Britain – and draining their pockets.
Mintago’s recent research revealed that the majority (87 per cent) of managers have been approached by an employee in the past 12 months to discuss concerns relating to their wellbeing, while financial wellbeing more specifically has been raised with two in five (40 per cent).
However, the simple fact remains that employers are still not doing enough to help, as support systems have not been clearly established in many organisations; just a third (33 per cent) of managers say their organisation has a clear process in place for handling employee concerns.
Such an approach can be dangerous as it risks creating an environment where employees are reluctant, or feel unable, to share concerns, resulting in their finances suffering – naturally to the detriment of their job satisfaction and performance.
Indeed, almost half (47 per cent) of managers told us they were uncomfortable discussing financial wellbeing issues with employees, so one can only imagine how their subordinates must feel.
Keeping employees happy and productive starts with helping them build a solid financial foundation to keep stress at bay.
So, what can employers do to rectify their lack of support measures and help boost employee financial wellbeing?
A razor-sharp financial wellbeing strategy
One of the most important elements of building robust financial wellbeing support is acknowledging that implementing a one-size-fits-all financial wellbeing policy will not meet the staff’s needs.
Employees can be all types of people, with varied financial circumstances. For example, the support needs of a new graduate, who needs to pay off debt will look different to those of a mid-career employee aiming to buy a home.
So, any measures must meet the unique needs and goals of each member of staff.
However, identifying these needs cannot be based on making sweeping assumptions. Instead, it is vital that employers take steps to start a dialogue with their staff.
This can take many forms, from an online survey to one-to-one interviews with HR personnel to pinpoint concerns and financial goals – what is most important is that it happens. Only then can employers begin to offer targeted, impactful support.
Support can include a variety of things. For example, solutions that simplify financial planning by providing a wide overview of employees’ finances via an online dashboard, from short-term savings pots to pension funds.
Developing financial literacy, by facilitating access to educational resources, is also a good option, as is providing cutting-edge tools, like AI-powered chatbots that can answer financial queries on demand.
Naturally, strong financial planning is a vital part of achieving financial security, and employers can be instrumental in supporting their staff with this.
Namely, providing access to independent financial advisers can go a long way towards helping employees manage more complex financial issues and develop robust, personalised financial plans.
