Did you know that one in three (35%) Brits are concerned about being able to meet their financial commitments in 2017 [Equifax research, Dec 2016]?
According to the Chartered Institute of Personnel and Development (CIPD), employee financial well-being should be a HR concern, with 70% of the UK workforce struggling with the negative impact of financial worries − affecting their mental and physical health, relationships and workplace engagement, potentially leading to more work absences.
That’s why the CIPD argues for a more proactive HR approach to help employees learn practical money skills, reduce financial anxiety and lead to a healthier and more productive workforce.
The question is, of course, how to do this effectively?
CIPD claims it is not simply a case of employers looking at salaries, but addressing other elements of employees’ financial well-being. These include their ability to save for the future; feeling rewarded in a fair and consistent manner; being able to comfortably pay off debts; and having benefits that offer protection in the case of an emergency (such as illness or redundancy).
The case put forward is that employers need to provide access to practical tools. If this sounds daunting or yet another job to add to the HR caseload, then support agencies such as the Money Advice Service will help employees increase their financial know-how. It also gives HR a way to proactively manage the many health problems linked to poor financial well-being, including stress, anxiety and other mental health problems.
If pay-rises are an issue this year, then you can still help employees to access any company benefits and increase the value that they place on them. The focus is on helping people to make positive changes by learning new financial skills, whether they are dealing with debt or trying to reduce expenditures and maximise the income they do have. Setting their own objectives, budgets and action plans will all aid your employees’ financial well-being.
Still struggling? Contact us to find out how we can help you to target specific problem areas for your employees, in an interesting way. Our free employee resources and financial courses on a range of financial planning and health and wealth topics provide independent, helpful tools and tips for your employees to take away.
Contact us today at Better With Money and see how we can help relieve the stress on your employees.