Whilst it’s undoubtedly true that money can’t buy happiness, financial wellness can certainly be one of the most significant factors in an employee’s overall well-being. As the cost-of-living crisis and economic downturn continue to pressure households, it’s time to look at the actual impact on your employees and how you can offer additional financial well-being support.
What’s the link between finances and mental health – and why should Employers pay attention?
Studies have shown that financial stress is a leading cause of workplace absenteeism,
presenteeism (when employees are physically present but not fully engaged), and increased turnover. Financial worries can lead to a distracted workforce, lowered productivity, and decreased focus, ultimately reducing work quality.
Analysis by The Money and Mental Health Policy Institute (founded by Martin Lewis CBE) found that employees with money worries are 50% more likely to report that poor mental health has impacted their performance at work.
An in-depth survey by AXA also found that 5% of employees admit to having taken time away from work in the last 12 months due to money worries, with a staggering 70% saying that they have spent time at work agonising over their finances.
But is this costing you as a business? According to The Centre for Mental Health, yes.
£1,035 per employee per year, to be exact.
- £335 is due to absenteeism
- £605 is due to presenteeism
- £95 to staff turnover
Barclays also estimates that poor financial well-being costs employers 4% of their payroll. So, what can we do to help?
Five practical ways to improve your employee’s financial well-being;
- Provide mental health first aid training to your line managers.
Equipping your leaders with the skills they need will help to create an environment where team members have the confidence to start conversations about their mental health, safe in the knowledge that they will be adequately supported and signposted to additional support such as Employee Assistance Programmes if needed. Zhoosh can arrange this training on your behalf with an accredited trainer; send us an email, and we’ll send you the details.
- Empower your Employees with Financial Education & Planning
Provide your employees with financial education resources to help them manage their finances. Workshops and online courses can include budgeting, debt management, retirement planning, and financial counselling services.
Zhoosh clients can upgrade their package to include six financial well-being workshops per year (in partnership with Finwell). These workshops can also give your employees access to 121 slots with a financial advisor at no additional cost.
- Make Financial Advice Accessible
Full awareness of your financial status (with tailored finance management action plans and the opportunity to regularly review your progress) can be a game-changer in taking control of your financial well-being.
Zhoosh partners with Maji, a complete financial well-being and money management platform which allows your employees to deploy targeted solutions based on their challenges and goals. It’s the perfect tool to power your financial wellness strategy.
- Consider the financial protection you can offer
Financial benefits, such as Pension Savings Plans, Life Insurance, Health Insurance or Critical Illness Cover, can provide employees and their families with a safety blanket and peace of mind for the future.
If you also offer hardship loans, pay advances or travel loans, make sure this information is well-promoted and easy to access.
- Shine a spotlight on your employee benefits & perks.
A good benefits package can support your employee’s financial goals by giving them access to schemes they may have yet to invest in.
Access to nursery benefits, supermarket discounts, reduced fees for gym memberships (hello, self-care), and cycle-to-work schemes are also added benefits that can aid in making your employee’s paycheck stretch further.
In conclusion;
It’s a lamentable fact that the financial challenges in the UK will impact most people in some way, regardless of their salary bracket. Rising interest rates, soaring energy costs, increased food costs – the list of things to worry about can sometimes seem endless and overwhelming.
Protecting your employees also protects your business. While we are not obligated to ‘fix’ our teams’ financial problems, we are morally and ethically obligated to support them in any way we can. Businesses that act early can mitigate the impact on employee well-being and their own bottom line.
Please get in touch if you want to discuss what support Zhoosh can offer you in creating a financial wellness action plan for your employees.
