Nikita Passi, Solicitor at Napthens, offers useful tips on how managers can support any member of their team who may be experiencing financial hardship.
As the cost of living continues to increase in the UK, it is more important than ever for employers to ensure their employee’s financial wellbeing. The cost of poor financial health can have a knock-on impact on an employee’s performance at work, resulting in presenteeism, absenteeism, and demoralised employees arising from the stress, anxiety and poor mental health of financial pressures. In a recent survey of 2,500 employees conducted by YouGov, a quarter of employees confirmed that they had money problems which were having an impact on their job performance.
Open conversations about finances are a well-known taboo in the workplace, with many employees feeling uncomfortable talking about or asking for help with their finances. Therefore, employers should encourage an open dialogue between their members of staff, encouraging them to speak out about any financial hardship they are experiencing and, wherever they can, employers should offer help and support to their employees.
Financial wellbeing tips
Whilst increasing an employee’s pay seems like the most obvious and ideal solution, given that many businesses are also struggling with the cost of living crisis and the current unstable and uncertain economic climate, unfortunately this is not a viable option for all. However, there are many other ways an employer can support their employees, such as:
- If an employee is showing signs of experiencing stress and/or anxiety due to poor financial health, then in the first instance an employer should seek to communicate with that member of staff and understand the employee’s concerns. Whilst an employer may not be able to alleviate all concerns, there could be some concerns that an employer can help alleviate. For example, if a member of staff has concerns about the rising cost of fuel prices, then the employer could explore whether the individual could carry out their role from home and/or whether they could reduce the number of days they have to come into the workplace to avoid the cost of commuting into work.
- Employers should ensure that they provide employees with details of external support services, such as mortgage advisers, financial planning and debt management as well as other organisations that can support with mental health, such as Mind. Research suggests that many employees feel uncomfortable talking about finances within the workplace. Therefore, by providing details of third parties who can provide support to individuals, this will enable staff to seek help should they require it.
- Offer staff benefits that may reduce the cost of living, such as staff discounts, health cash plans or introducing salary sacrifice schemes, such as the cycle to work scheme.
- Support in work progression by ensuring employees are maximising their earning potential by training and upskilling them so that they can progress to higher paid roles within the business.
If you have any questions on how you can support your employee’s financial wellbeing, please do not hesitate to contact a member of the Employment Team at Napthens. Napthens Employment Team are able to offer 30 minutes of free advice to QCS members.
