Why employee financial wellbeing matters
Many employers already recognise the moral and business case for supporting employee financial wellbeing. Money worries affect our mental and physical health, which in turn can affect work performance. To help address this, nearly half of employers have a financial wellbeing policy in place.
Ideally, a financial wellbeing policy should form an integral part of every employer’s holistic wellbeing strategy. But even small employers with a limited budget can do their bit with a simple policy that acknowledges their commitment and lets their workforce know where they can seek help if they need it.
Get started with three steps
Any employer can begin to build a financial wellbeing policy with these three simple steps:
- Let your workforce know that they can get free, confidential and independent money and debt advice from the government’s Money and Pensions Service.
- Make sure your workforce is fully aware of all the benefits you currently offer and how to make the most of them.
- Begin a dialogue with employees and line managers about the financial challenges and opportunities faced by them and the business. This will show your concern and help to break down the stigma associated with money problems.
Once you’ve got these basics in place, you can then look to expand your financial wellbeing policy to include a commitment to paying the ‘Real Living Wage’, supporting in-work progression, expanding your benefits package and offering financial education. Explore the resources on this page to find out why and how.
Why employee financial wellbeing is important
Our research shows there’s a clear business case for supporting employee financial wellbeing. It's an integral part of creating a healthy workplace where people can flourish, reach their potential and make a significant contribution to their organisation’s performance. There’s also, of course, the moral argument: we should take action because it is the right thing to do.
Download the report:
The Financial wellbeing guide, published by The National Forum for Health and Wellbeing, provides further facts and figures about the impact of the COVID-19 pandemic on financial wellbeing, and how this has added to the urgency for employers to take action.
Supporting your workforce’s financial wellbeing
Our practical guidance illustrates key steps along the journey for organisations to help their employees make better financial decisions, with benefits for organisations and workers alike. The guide is aimed at leaders and HR professionals in organisations of all sizes and in all sectors that want to improve the financial wellbeing of their staff. It offers a menu of options, from starting to develop a financial wellbeing strategy to refining what you are already doing.
The guide was written pre-pandemic, but the advice remains just as relevant – if not more so.
Behavioural science and your financial wellbeing strategy
- encourage people to spend enough time looking at their financial wellbeing
- increase take-up of and engagement in financial wellbeing programmes
- uncover and challenge biases that impede financial capability and wellbeing.
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