Financial strain is being felt across the UK, driven by what feels like ever-increasing inflation. With another rise, the UK now has the highest inflation rate in the G7.
Financial worries, due to the current economic climate, are also making their presence felt across UK workplaces. Recent research revealed 40 percent of employees experience financial stress at least once a week, while 65 percent don’t believe that hard work will earn them financial stability.
Findings like these reflect the day-to-day reality of many employees in the UK, as well as the disillusionment that arises from trying to balance financial strain with a genuine commitment to their work.
Financial struggles often go hand in hand with increasing incidences of mental health strain, undermining the workforce further and its ability to operate productively and efficiently.
However, individuals are not the only casualties of inflation and rising living costs. Businesses are also affected, limiting their potential to offer pay raises that can ease the financial burden felt by employees.
Our HR Priority Report, reveals 65 percent of employees feel employers should be doing more to support workers in the current cost of living crisis gripping the country. So, how can companies ease financial strain and support employee wellbeing in times of ongoing economic pressure?
Remove the stigma and encourage open conversations
Research shows that only 1 percent of Brits would feel comfortable discussing financial matters with a colleague, highlighting the roadblocks that exist in addressing financial stress in the workplace.
While not everyone feels comfortable discussing finances, financial stress can impact one's wellbeing. It’s essential that businesses foster a culture where conversations about wellbeing are the norm, inspiring employees to access the available support services without hesitation or shame.
But continuous internal communication is key. Without this, efforts to remove stigma and encourage participation will go unnoticed and one-off campaigns will slowly be forgotten.
Active internal messaging that is consistently woven into company values and culture, particularly around seeking financial and mental health support, will encourage both new and long-term employees to find it.
Upskilling managers with training to engage in conversations about wellbeing can be meaningful and impactful, giving them the tools they need to support their colleagues in times of financial stress and pointing them towards resources that are available.
Peer-to-peer support encourages a culture where recognition of and engagement with one another is commonplace.
Provide access to wellbeing support
Consistent financial stress can impact an employee’s ability to work effectively, contributing to feelings of inadequacy and anxiety. This cycle tends to repeat itself, acting as a vice grip that pulls employees down further. However, with the right kind of support available, this cycle can be broken.
When it comes to offering support, many businesses provide employee assistance programmes (EAPs), counselling or advice on relevant charities or local community services to help employees take the first steps towards addressing their financial stress and wellbeing through a scheme provided by their workplace.
Through EAPs, employees can take the first steps towards opening up about the financial strain they’re experiencing and discussing ways in which to tackle it. Not only do EAPs offer counselling, but they empower individuals with advice and practical information, helping them make informed choices about budgeting, saving, and managing their finances for long-term stability and sustained wellbeing.
Offer practical and sustainable financial solutions
Pay rises may be preferential for many but they’re not always a feasible solution for an organisation. By offering various financial benefits, organisations can help employees stretch their take-home pay.
Salary sacrifice schemes have minimal overhead costs and often result in greater National Insurance savings, enabling organisations to fund other HR initiatives that benefit employees in various areas. These may include cycle-to-work schemes, car benefits, childcare vouchers, or holiday allowance trading options.
Discount programmes help employees save money on everyday expenses like groceries, toiletries and travel. The key is offering a wide range of discounts too because employees will have different needs and wants.
An example of this might be our SmartTech™ scheme, which enables employees to buy white goods and consumer or health technology products instantly and affordably, with free financing from their employer.
These financial benefits make a tangible difference to take-home pay and empower organisations that want to demonstrate a genuine commitment to enhancing their employees’ financial stability and wellbeing when times are hard for all.
