How to improve employee financial wellbeing in the workplace

Poor financial wellbeing is a key driver of mental health challenges, affecting employees’ long-term security, overall wellbeing, and ultimately their productivity. Our research shows that 64% of businesses have seen an increase in absenteeism linked to mental health issues recently.

Recent economic uncertainty puts financial stress into focus even more. But by actively addressing and reducing financial strain, employers can remove one of the biggest sources of workplace anxiety - improving wellbeing, engagement, and performance.

Here are a few handy tips on how employers can achieve this: 

Gather insights

Use anonymous surveys or focus groups to understand what’s impacting your employees’ financial wellbeing. Is it debt? A lack of savings? Confusion around pensions? Needs will differ across generations - Gen Z may focus on student debt and first-home savings, while Baby Boomers may be more concerned with pensions and retirement planning. This reinforces the need for flexible, tailored benefits.

Review and enhance benefits to improve flexibility

Decoding your Employer DNA is key here, as you’ll be able to decipher the unique needs, challenges, values, and priorities for your workforce. 

Make sure you are offering flexible financial benefits that can be tailored to the individual. Flexible benefits platforms like 4me make it easy for employees to choose, manage, and understand their benefits, while giving HR the data to optimise offerings. 

Don’t forget that great benefits are only great if people understand and use them. Regular, clear communication is essential to drive engagement and ensure employees utilise what benefits are on offer. For example, make it clear that financial support is included in Employee Assistant Programmes (EAP).

Introduce financial wellbeing programmes

As you review and enhance your benefits, consider giving employees access to certified financial planners or coaches for one-on-one guidance on managing money, investments, and debt.

You could partner with providers who enable payroll-linked savings schemes, making it effortless for employees to build emergency or medium-term savings.

Offer flexible working

Flexible working reduces costs for employees by cutting commuting expenses, lowering spend on lunches, coffees, and workwear, and helping parents save on childcare. It can also enable employees to live in lower-cost areas and free up time to avoid expensive convenience services, such as buying takeaways. 

Create a culture of openness and support

Normalise conversations about money and remove the stigma that often surrounds financial stress. Leaders can set the tone by acknowledging the real impact financial pressures have on employees’ lives and performance, and by promoting resources without judgment. 

Provide confidential channels for advice and communicate regularly so employees know help is available.

Educate your workforce

Hold educational workshops, webinars and provide content, such as written guides, on budgeting, saving, managing debt, and retirement planning. 

Topics should cater to employees at different stages of their financial journey. You could even collaborate with financial advisers, your pension provider or specialist third-party organisations to deliver ongoing financial literacy training.

Monitor and adjust programmes accordingly

Needs change over time and so should your benefits strategy. You should consistently adapt your benefits strategy in response to your employees’ evolving wants and needs.  

Measure the impact of financial wellbeing initiatives through employee engagement surveys, turnover rates, and productivity metrics. Benefits platforms can make this more streamlined and simpler, also reducing time and administrative costs for your HR team. 

If you would like more information or support on this topic, take a look at how our employee benefits and wellbeing team can help.