We spent a lot of our lives thinking about money in one way or another. Whether we’re saving for a house, a holiday or retirement, there’s an expectation to understand things like credit ratings, interest, and plenty of other jargon that we are simply not taught at school. The onus has been put upon us to learn for ourselves (and teach, if we have dependents).
According to Financial Capability:
- 39% of adults (20.3 million) don’t feel confident managing their money
- 11.5 million have less than £100 in savings
- nearly nine million of us are in serious debt, and only around a third receive help.
The government’s Money and Pensions Service say 8 out of 10 employees take their money stresses to work, which can impact their performance. The impact has been recorded as 4.2 million working days lost due to poor financial wellbeing. Which in monetary terms is in the region of £626 million in output.
Perhaps this is why there is a level of stigma around it. Debt and salary discussions oftentimes make us uncomfortable, whether at work or home. And yet financial wellbeing has a huge impact on our health and happiness. Interestingly, here’s what the NHS has to say:
NHS Employers highlight that a common misconception around financial wellbeing is that it isn’t the employer’s responsibility, it’s down to the individual. The reality is that financial wellbeing is a shared responsibility between the employer and employee.
So, what is financial wellbeing, and exactly how can we promote it within our organisations? Let’s dive right in…
What is financial wellbeing?
Good financial wellbeing is having a sense of security in your earnings and having enough money to meet your needs. While it may not include having an abundance of disposable income, it is about being reasonably comfortable to make ends meet each month, with some to save and spare.
According to Money and Pensions Service’s 10-year UK strategy to financial wellbeing, this can be broken down into three pillars: foundations, day-to-day and looking ahead. The details under these are:
How can promote financial wellbeing within your company
The FlexGenius platform allows you to send communications directly from the interface. This enables you to send regular updates about the benefits and services your company offers your employees. We recommend integrating content about the financial packages you have available within these. This could also include the services such as access to financial advisors, debt advice and pension planning tools.
You can do so in three easy ways:
- Make employees aware of free, confidential, independent advice such as the Money and Pensions Service.
- Ensure all employees are aware of and have access to your benefits platform, what’s available and how to make use of them.
- Tackle the stigma associated with money and money problems by making it a talking point. Obviously, we don’t mean asking questions or putting anyone on the spot, but by highlighting the above and using debt advice in the examples, you could help make positive changes.
By understanding financial wellbeing and your responsibility as an employer, you can help drive positive change in your employees. As HR professionals your role is to educate your staff on the relevant benefits available to them and how they can help make use of them.
If you would like to find out how our flexible benefits platform could make it easier for you to promote and communicate what’s available to your team, book a demo with us today.