Supporting financial wellbeing in the workplace: an employer toolkit from the Chamber and the Money and Pensions Service
Date published:
Blog post from Karleen Dowden, Money and Pensions Service
The case for financial wellbeing in the workplace
In a time when businesses are experiencing increased costs, as well as skills and labour shortages, many are considering how they can better support and retain staff without incurring additional costs. There is no question that employees are also feeling the bite of cost of living increases and for particular groups, including those on low incomes, meeting everyday living costs and credit commitments is becoming increasingly difficult.
Findings from MaPS’ recent adult financial wellbeing survey showed that within the North East, 30% of people couldn’t pay an unexpected bill of £300 from spare money or affordable borrowing, and 48% with bills and credit commitments are struggling to keep up with or are falling behind with their payments*. Worryingly 43% of those who are 18 years old and above in the region do not feel confident about managing their money; and at the same time 13% of people are borrowing to buy food and pay bills which is a real concern as frequent use of credit for everyday costs is linked to mental health problems*.
There is compelling evidence to support the case that employees with good financial wellbeing – which can be described as “knowing your can pay the bills today, can deal with the unexpected and are on track for a healthy financial future” – are less likely to be absent from work and more productive. According to MaPS survey of more than 10,000 UK adults, people with high financial wellbeing were more content with life than in households with incomes over £50,000 per year (61% versus 48%); proof that money alone doesn’t necessarily buy happiness*..
How can employers support financial wellbeing in the workplace without monetary investment?
The Chamber have recognised the need to support members in this area and – in partnership with the Money and Pensions Service – have developed a toolkit for employers to provide free and practical ways to develop their financial wellbeing offer. The toolkit provides both quick wins and longer-term strategic ways on how to support employees and aims to provide a starting point to help businesses on their journey of improving employee financial wellbeing.
One of the key things the toolkit aims to address is ensuring employees feel confident in managing their money and knowing what tools resources and services are available to help them do this. Evidence suggests that nearly two thirds of people had not sought financial advice, guidance or talked to someone about their finances, with those on the lowest incomes being much less likely to discuss financial matters than those on higher incomes. Of those in financially vulnerable groups who had sought financial advice, between 25% and 40% stated that they had not received all the support they needed. The toolkit includes marketing and communication materials that employers can use to signpost employees to free money and debt advice services and also helpful tools such as a budget planner and bill prioritiser that can be used by employees to help them manage their money.
Many businesses are not currently in a position to increase wages or pay bonuses to help employees offset cost of living increases. However, is it unrealistic to assume that all businesses regardless of their size or sector are able to, as a minimum, raise awareness of the support available for employees to improve their financial wellbeing?
The Chamber’s toolkit can be found here and free support on developing financial wellbeing in the workplace can be accessed through the Money and Pensions Service.
Image: Fizkes