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We hear lots about wellbeing in the workplace but what about financial wellbeing? The CIPD suggests that employee financial wellbeing (EFW) is the least common area to be included in HR wellbeing strategies yet 28% of people say money worries have impacted their work performance. Alex Kell is Director at Quayside Wealth Management, part of St. James’s Place Wealth Management, and offered this advice:
1. Understand the importance of employee financial wellbeing
“With busy lives and careers, employees often have limited time to look after their own financial wellbeing. But helping staff to understand and control their own financial wellbeing can positively impact not only their overall wellbeing but their productivity at work. Increasingly, EFW is seen as a corporate responsibility and a way of motivating and retaining employees in a competitive recruitment environment.”
2. Put your strategy in place
“The first step is to understand what it is your employees are working for, from their point of view, from managing existing debt, budgeting more effectively to reduce stress or saving money. Your EFW strategy is how you will empower employees to take control of their finances so they can achieve these aims, giving them the knowledge, advice and support they need to make informed decisions about their finances throughout their careers.”
3. Consider life stages
“An employee’s financial aims and concerns will change alongside their life stage, so it’s vital that any EFW activities are as inclusive as possible. This includes everything from helping those who have just started their career to understand payslips, taxation and workplace persons to developing investment and pension knowledge as employees move through major life changes. For employees with grown up families, the focus changes to intergenerational wealth planning and reducing mortgages whilst those nearing retirement may want to take a ‘glide’ path into active retirement or protect accumulated wealth. Finance is one part of it but it’s also about helping people to manage the emotions that come with managing money at all stages of life.”
4. Update your benefits
“In the current competitive employment landscape, many firms are looking for new ways to engage their teams and boost wellbeing with a rounded benefits package playing a huge part in this. We recently started using our local Town & City Gift Card, the Gloucester Gift Card, within our benefits package to support local businesses whilst giving staff the freedom to spend their cards with all manner of retail, hospitality, wellness and services businesses in the city. The trivial benefit scheme means we can give our staff a non-cash gift, such as a local gift card, tax free, so they receive the full benefit of the £50, which isn’t the case with cash.”
5. Offer practical support
“Research from REBA found that 75% of employers place high consumer inflation as a risk to employee financial wellbeing with 77% placing energy prices as a risk. 53% say they will increase financial wellbeing spend, including advice for staff. Alongside advice, you might also consider practical support with these risks such as the use of local gift cards for staff to spend in a practical way to buy food or fuel. For us, not only is using our local gift card beneficial to our staff but support for local aligns with our ethos as a company.”
