Editorial: I like to think that most employers take their workers’ wellbeing seriously. But with employers proving slow to develop dedicated financial health strategies, it may be time for management to start talking to staff more.
If staff are ill, they are expected to take time off until they have recovered and are offered some kind of support. A number of companies have occupational health departments, or provide private health insurance and in-house counselling.
Poor health results in an unhappy, unproductive workforce. But research shows that feeling stressed about money can have similar effects.
In 2017, a MetLife study found that 34 per cent of employees said they are distracted at work due to financial worries.
As highlighted in the Financial Advice Working Group’s 2017 report for HM Treasury and the Financial Conduct Authority, the workplace is a great opportunity to guide people on how to manage their finances. Conveniently, it is a place where people already engage with money through wages and pensions.
The report argued that reducing financial worries among employees could raise morale (and performance), increase trust between employers and employees, and improve retention levels.
A recent Barnett Waddingham survey of 243 employers found that 88 per cent of respondents are concerned about the financial issues their staff are struggling with. But 49 per cent of organisations do not have a financial wellbeing strategy in place.
Supporting staff when it comes to financial concerns could encourage employees to engage more in planning for retirement while showing them how to prioritise and manage day-to-day finances alongside shorter-term savings goals.
The study showed that employers said one of the main obstacles to introducing a strategy to help employees was cost.
Proving to boards that investing in staff financial wellbeing could benefit the company is sometimes difficult, but maybe the best place to start is by asking the employees.
Carrying out analysis and speaking to staff to ask for their views on additional support related to personal finance matters could provide a valuable insight into what workers want – and may make management realise that it is something worth spending money on.
Sophia Imeson is associate editor at Pensions Expert. You can follow her on Twitter @SophiaImeson and the team @pensions_expert.
