A recent study sponsored by Octopus Money reveals that many workplaces are falling short when it comes to discussing financial matters with their employees.
One in four employees find their managers uncomfortable discussing money, and a staggering 66% feel their companies don’t care about their personal finances.
Employee finances are concerning, with millions facing mortgage renewals in the next year, and one-third of employees reducing or stopping pension contributions.
Financial wellbeing is now a critical concern for employers. Failing to address money-related topics with employees can lead to lower engagement, higher turnover, and increased recruitment and training costs.
Octopus Money’s CEO, Ruth Handcock, offers advice on how HR professionals can future-proof their benefits strategy and strike the right balance between benefits and pay raises.
- Recognise the impact that poor financial wellbeing has on employees
Great progress has been made in pushing mental wellbeing in the workplace, while financial wellbeing remains overlooked. Money stress is the leading cause of mental health issues, with over half of employees saying this negatively impacted their ability to their jobs. Aside from the emotional toll this has, this impacts their productivity and resilience, and employers ending up with unmotivated teams.
- Be bold: make talking about money a regular part of office life
Too many employers avoid talking about money, for fear that it’ll trigger uncomfortable conversations. However, with the cost of living crisis, these are more important than ever. Brits don’t naturally like talking about money – 11% would rather start a conversation on a tube than talk to a colleague about money. However, creating safe spaces to talk, and encouraging people to share their experiences, can make all the difference in helping people feel less isolated.
- Empathy is more important than ever
Understand that your employees may be struggling, and that they may be frustrated that they haven’t received the pay rise they were hoping for. Lead with transparency and honesty about why this isn’t feasible – avoid overpromising and under-delivering.
- Make sure you spend enough time in “listening mode”
Employers often don’t spend enough time listening to their employee’s experiences and points of view. Make sure you’re focused on the benefits that have the strongest impact on long term employee wellbeing – free food and snacks are great perks, but do they really make someone feel more supported by their employer?
- Have you “kitted out the gym but forgotten the personal trainer”?
Unless employees understand their benefits they’ll never value them. Make sure that your HR teams are spending time with employees to help them understand the benefits on offer, at moments that are relevant to them (not just right when they join the business!) Having a neutral third party to remind employees of your benefits when it’s appropriate to their lives can increase engagement.
