Employers have a unique opportunity to support employees in achieving financial peace of mind says Stuart Hopley, Relationship Director Workplace Pensions.
In today’s fast-paced world, financial stress is a common concern that significantly impacts mental wellbeing.
As employers, you have a unique opportunity to support your employees in achieving financial peace of mind, which in turn enhances their overall mental health.
Here are three key ways to effectively promote financial and mental wellbeing.
1. Create a supportive environment
Financial wellbeing is inherently linked to mental health, and the cost of poor mental health is calculated at a whopping £300 billion a year in England.* To create a positive working environment and contribute to overall employee wellbeing, employers can communicate the importance of financial wellbeing and provide comprehensive support packages that include mental health resources. Enhanced support packages can lead to greater staff retention, fewer absences, and a more productive workforce.
2. Knowledge is power
Employees often seek financial information from their employers – even more than they will from banks!** Financial wellbeing is not just about having enough money; it’s about understanding your finances, and employers play a crucial role in providing education on this.
Research shows that 41% of employees experience financial pressures that affect how stressed they are at work.*** Recent market volatility may well have further exacerbated this stress, particularly around potential loss of investment value. By providing clear financial education, you can help your employees feel more informed and able to take control.
Employers can share a variety of educational resources, such as practical tips and checklists for managing finances and helpful podcasts and webinars. Our most recent Retirewell employee webinar focused on enhancing financial wellbeing as we know how important this is to overall wellbeing.
3. Not too cool for tools
Providing practical tools and resources is another key way to support financial wellbeing. Knowing what you have, how much you need, and how far it will go, can help employees set financial goals and reduce money worries. The most frequently accessed topics on our Be Money Well site are saving and budgeting, indicating a strong need for everyday support in these areas.
Employers can offer resources to manage financial stress related to rising living costs, such as budget planners and savings calculators. We’ve found that integrating financial management tools within our app has also been a key way to offer people the support they need at their fingertips.
The Broader Impact
Investing in financial wellbeing initiatives not only benefits employees but can also contribute to the overall success of organisations. A strong focus on financial wellbeing enhances value, making organisations more attractive to employees.**** Companies that prioritise financial wellbeing often see improved employee engagement, higher productivity, and stronger loyalty. Focusing on creating a supportive environment, enhancing financial understanding, and providing practical tools can significantly improve financial and mental wellbeing. By empowering your employees with comprehensive resources, you can help them achieve financial peace of mind.
References:
* The Big Mental Health Report – Mind
** BrightPlan 2024 Wellness Barometer Survey
*** MHFA England
**** Briefing: Financial Wellbeing Research 2024 | (REBA)
