Financial wellbeing and the impact in the workplace
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Financial wellbeing – the theme of Talk Money Talk Pensions Week 2019 – is about feeling secure and in control of your money as well as being able to manage day-to-day while working towards a healthy financial future. We think it’s important to not only consider how individuals can build their own financial resilience wellbeing but also how employers can support their staff in developing lasting financial capability strategies.
A recent report from Natwest (https://www.moneyadvicescotland.org.uk/Handlers/Download.ashx?IDMF=f4148ec3-ec0e-468b-ae07-7f615fc34548) recommends that employers should, at a minimum, include financial capability training and support as a standard part of their employee induction process, and a growing body of evidence shows that there are clear benefits of investing in this for all employees at all stages of their career. The importance of financial education at work and the benefits it has for both employees and employers is why we developed Money Works – a programme that exists to promote financial wellbeing in the workplace and provide vital financial inclusion skills for employees and apprentices across Scotland.
Research has found that levels of financial capability and wellbeing very greatly from person to person. An individual’s salary, age, or employment history does not necessarily correlate to their confidence or ability to manage their earnings or their state of financial wellbeing. It therefore makes sense to offer financial wellbeing support to all employees.
The arguments for providing financial wellbeing support in the workplace are strong; firstly, the impact of poor financial wellbeing on productivity is significant. Anxiety about finances leads to worse mental, physical, and social wellbeing which can affect attendance and performance at work. The Chartered Institute of Personnel and Development found that money worries were the biggest source of stress for UK employees.
According to research from Barclays:
-Almost half of employees worry about their finances
-1 in 5 lose sleep worrying about their finances
-1 in 5 said that worrying about their finances affects their work
-Almost 80% of employees are not satisfied with the efforts of their employer when it comes to managing their finances
This evidence shows how great an impact an individual’s financial wellbeing has on their overall wellbeing, and how intrinsically linked money worries and work are. Both employers and employees agree that if employees had access to help and guidance, they would have better control over their money and feel better prepared for future planning. If this support is available in the workplace, employers can help ensure their staff are better prepared to respond to financial unpredictability, in turn alleviating some of the pressure points that lead to absence and stress.
One of the aims of Money Works is to provide a reliable, flexible source of financial guidance. Participation in our financial wellbeing in the workplace sessions benefits both employees and employers. Employees gain vital financial resilience skills and get access to resources that research shows is needed and wanted. Employers benefit from a more motivated and productive workforce, as well as highlighting them as an employer that is committed to investing in employees’ overall wellbeing.
Our Financial Capability team designs custom workshops and works with employers to meet the needs of their staff, and workshops are delivered in the workplace.
Possible topics include:
-Planning for retirement
-Day-to-day financial management
-In-work benefits
-Savings (including emergency funds, ISAs, saving for a deposit)
-Insurance (including life insurance)
-Managing credit card debt
-Understanding taxes and payslips
These topics are based on research of what employees would benefit from knowing more about. For example, 22 million working-age adults don’t feel that they know enough about pensions to make decisions about saving for retirement, so we offer sessions on this.
If you’d like to learn more about Money Works, contact financialcapability@moneyadvicescotland.org.uk or complete this form https://www.moneyadvicescotland.org.uk/forms/money-works-enquiry
