Financial wellbeing is about feeling secure and in control of your finances. And sadly, it’s a state many employees are struggling to attain. Research by CEBR shows 10% of UK employees miss work days due to financial worries. With even more workers (18%) noticing a decline in productivity at work due to financial wellbeing.¹

Of course, ensuring every member of the workforce is paid enough money to live comfortably is a major contributing factor. But financial wellbeing extends beyond this. It includes education and proactive measures to support individuals to feel financially healthy. Many employers are stepping up to offer this level of additional support for their people.

Why should I care about financial wellbeing?

While financial wellbeing is a relatively new addition to organisational wellbeing strategies, it is becoming more common. When there is stiff competition for top talent across many sectors, any steps you take to effectively recruit, engage and retain employees make good business sense. 

It’s worth noting recent PwC research that reveals 76% of financially stressed employees, and 57% of employees who aren’t financially stressed, would be attracted to another company that cares more about their financial wellbeing.²

Incorporating financial wellbeing into your overall wellbeing strategy isn’t just a wise business decision, it’s also the right things to do. Employers have a responsibility for the wellbeing of their team members. As income providers this includes financial wellbeing. 

There are multiple pressure points on your employees. From adapting to home and hybrid working to the demands of childcare and caring for elderly relatives. This often leaves limited time and capacity to reflect on personal finances. You can make a big difference by offering additional education and support in this important area. 

“Businesses we speak to recognise that if they ignore financial wellbeing, they are already on the backfoot when it comes to attraction, recruitment, onboarding and retention. Financial advice is an employee benefit with little cost to the business and a potentially significant impact.”

Marcus Dunk, Chartered Financial Planner, Anderson Financial Management

What can I do about financial wellbeing?

The best way to support your employees is by providing them with education, advice and support to make informed decisions about their finances. Wherever they are in their career. 

Many young people haven’t received a financial education at school and will benefit from relatively simple advice about mortgages, savings and the importance of early investment in a pension. More experienced team members may need help with their retirement planning and juggling multiple demands on their finances.

To be most effective, financial wellbeing support should be targeted towards the individual. Aside from each person’s different set of financial circumstances, a range of factors including age, gender, personality, family situation and existing health conditions will all make a difference to their experience.

What support do your people need?

Given the need for tailored financial wellbeing support, it can be hard to know which measures will best support your team. The first step is to start the conversation. It can feel awkward for many people to talk about money. Make it easy by having open and honest discussions and ensuring everyone involved – including managers – has the right tools and attitudes.

Ask people what they want, where they might be struggling and what they need. This might take the form of:

• Financial education – in the form of workshops or group sessions. We regularly run workshops with businesses and charities and consistently receive positive feedback about how useful the participants find them. 
• Personalised financial advice – one-to-one consultations with a trusted advisor will help support individual needs. We find that when we clearly explain a benefit in an individual consultation, they are far more likely to take advantage of it.
• Improved communication – detailed information will help people understand the benefits on offer. It’s far more effective than a checkbox list of opt-in benefits that can feel overwhelming and turn people off.
• Ask for feedback – be open to constructive criticism about the benefits you offer. For example, access to a good pension is a significant value add for employees. Or income protection and healthcare might be front of mind after the turbulence of recent years.

“The financial wellbeing workshop was such a useful session for our coaching team. The youngest members of the team said it was information they hadn’t been told at school. Now at their first job they feel much more confident about what they should do next to look after their money.”

Emily Haberfield, Fundraising & Marketing Executive, Empire Fighting Chance

It’s more important than ever that individuals have access to the support they need to get their financial affairs in order and make adequate preparations for the future. Which is why we have developed the Curious Investor’s Guide to… Financial wellbeing at work. It’s full of useful information, advice and case studies for employers.

Download our Curious Investor’s Guide to . . . Financial wellbeing at work. 

The Curious Investor’s Guide library, click here to see more of our guides. 

¹Centre for Economics and Business Research (CEBR) for Aegon, Financial Wellbeing and Productivity in the Workplace, 2022.

²PwC, Employee Financial Wellness Survey, 2022.