As an employer, you might think that in paying a fair salary you’re doing your bit to support the financial wellbeing of your employees. But research by MetLife uncovering the scale of employees’ financial worries and its impact on their work might make you think again:
For recruiters, who work in a high-pressure, target driven environment there’s already a degree of stress in their working lives. In fact, professional services came joint 4th in the top 10 industries for work-related stress according to a recent survey. The same survey found monetary stress was the third most prevalent type (experienced by 45% of respondents) after work stress (59%) and family stress (46%). Financial stress results in decreased productivity and focus, so in protecting staff from financial stress you are also protecting the bottom line, as well as attracting and retaining talent.
What is financial wellbeing?
MetLife identifies four key indicators of financial wellbeing – and it’s hard to argue with them:
a) Control over day-to-day, month-to-month finances – knowing what’s coming in and going out
b) Capacity to absorb financial shock – such as a period without work or a family illness
c) Confidence about meeting financial goals – such as buying a house, funding a child’s education or retiring on target
d) Ability to enjoy life as you might reasonably expect – for example being able to afford a holiday or smartphone.
How can employers help?
Health and wellbeing support is increasingly important to employees – 38% said they would move to a company that put their financial wellbeing as a priority. Employers are also recognising the value of employee wellbeing measures with 35% offering wellbeing programmes (up from 11% in 2015). A financial wellbeing programme should have three main aims:
Helping employees to cope financially with ill health, injury and bereavement. Helping them plan for the future and making the most of the employer pension scheme.
Make sure employees have the basic financial skills they need to manage their money – for example –budgeting, understanding and managing debt. You could provide access to personalised financial advice (and there are tax-breaks for doing so), workshops or coaching.
Promoting healthy financial habits such as saving to foster a long-term improvement in financial wellbeing. Well-designed employee benefits packages will use behavioural economics to structure the choices employees are required to make and ‘nudging’ them towards better choices.
With just under 116 million working days lost to stress and anxiety in 2017/18, and financial worries a huge contributing factor, this issue isn’t going away. In understanding the challenges that face your workforce and providing an employee benefits package which puts employee wellbeing at its heart, you demonstrate that you care and promote engagement, talent attraction and retention.
 Hospital admissions for stress and anxiety soar among office workers, Emily Perryman, Health Insurance Daily online, 11 December 2018.
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