Empowering Employees to Achieve Financial Success in the New Year

Financial success is a critical aspect of overall wellbeing and happiness for employees. Financial stress can have a significant impact on employee productivity and overall wellbeing, and this is becoming particularly prevalent in light of rising living costs. Research from the FCA shows that 7.8 million people are struggling to keep up with their bills, with this putting increased pressure on employees. 

When employees are on the road toward financial success, this does not only benefit them but also your business. Employees are likely to experience increased motivation and job satisfaction, therefore increasing business productivity whilst decreasing absenteeism and staff turnover. Moreover, your business is likely to gain a reputation as a considerate employer, helping with future recruitment efforts.

The importance of employee financial wellbeing

Financial stress can harm employee productivity in the workplace, as well as overall wellbeing. Financial concerns can lead to increased employee absenteeism due to associated poor mental health, decreased engagement when it comes to completing tasks in the workplace, and a decrease in total job satisfaction. In addition, financial stress can result in decreased mental and physical health, including a higher risk of depression and anxiety among employees. 

Employers have a responsibility to support their teams’ financial wellbeing for several reasons. Firstly, employees are more likely to be productive and engaged in their work tasks when they feel financially secure and stable. Furthermore, employers have a moral obligation to support their employees and create a safe and healthy working environment. Financially stressed employees are increasingly likely to seek out personal loans, take on additional work outside of their main role, or engage in unethical behaviour to make ends meet. This not only affects the wellbeing of employees, but also the reputation of an organisation. Research has revealed that 81% of employees working for organisations with a financial wellbeing policy say that it is important that any future employer has an equivalent structure or process in place. Moreover, a review of organisations with no financial wellbeing policy discovered that only 28% of employees believed their employer was doing enough to support their financial health.

Strategies for empowering employees financially

There are several effective strategies employers can use to financially empower their employees:

Provide access to financial education and literacy programmes: By providing employees with the knowledge and skills required to effectively manage their finances, you can help them reduce financial stress and make informed decisions about their future. 

Provide access to financial planning tools and resources: By enabling employees access to such resources, you can help them manage their current financial situation, and make plans for the future such as creating a debt repayment plan. Tools may include budgeting apps, financial calculators, or access to financial advisers who can tailor guidance to their specific needs.

Offer a good employee benefits package: This will help to provide your employees with ways to reduce spending, improve physical and mental health, and enjoy more leisure time. Benefits provided could include health insurance, retirement benefits, restaurant vouchers, or free or discounted gym memberships. Research from Money and Mental Health has revealed that 86% of people believe that their financial situation has made their mental health problems worse, revealing the direct link between financial and mental wellbeing. 

Promote a healthy employee work-life balance: This is critical for your employees’ overall wellbeing, including financial health. You can promote this by offering flexible working hours to suit your teams’ requirements, encouraging regular time off, or providing other support that helps employees effectively manage the demands of work and life.  

Supporting employees on their journey towards financial success

In conclusion, empowering employees to achieve financial success is vital when working to ensure that they are happy and content, and do not bring financial worries with them to the workplace. Employers have a responsibility to support their employees’ financial wellbeing, and this can be achieved through the implementation of a range of strategies. By taking an active role in empowering your employees, you can create a more positive and productive working environment which is beneficial for everyone.