Let’s Talk About Money
Employers must break down social taboos around speaking about money, says a new report.
The Financial Wellbeing Guide 2023 says managers need to do more to signpost the support that is available to workers or risk failing to address the problem.
The Financial Wellbeing Guide 2023, produced by the National Forum for Health and Wellbeing at Work and AMBS, says that while pay is an important factor in tackling worries about the rising cost of living, it is imperative for employers to speak to employees about money worries and proactively tackle the stigma in talking about financial difficulty.
The report says more than two thirds (68%) of UK employees say they would not tell their employer about personal money worries, yet like many other sources of unmanageable stress, financial problems can impact on mental and physical health, relationships, performance at work and overall quality of life.
In the UK a record 2.5 million people are unable to work due to long-term illness and 28% of people report that financial concerns are negatively affecting their work performance, highlighting the need for businesses to bolster support for employees enduring financial difficulties.
Strategies to support
Experts from the National Forum for Health and Wellbeing — including Barclays, a member of the Forum — have developed the Financial Wellbeing Guide to urge UK employers to take immediate action to tackle the issue, and to provide strategies to support employees during the cost of living crisis.
Sir Cary Cooper, Professor of Organisational Psychology and Health at AMBS, said: "It's clear that having a workforce that feels financially secure is as important to employers as it is to their employees. It will create a happier and more productive workforce, alleviating some of the concerns that might be preventing employees from being their best at work.
"While fair pay is vital to helping employees during the current challenging economic landscape, it should just be the foundation of a broader plan to support colleagues that also includes targeted interventions such as education, guidance and flexibility, and a supportive and inclusive culture."
This guide offers implementable actions relevant to organisations starting out on their financial well-being journey, as well as those wishing to expand their offering.
Supportive
Sir Cary added that supportive and skilled managers were key, as they are more likely to enable a culture of flexibility, have supportive conversations about financial wellbeing, and have effective career conversations to help their teams progress into higher skilled and more highly paid roles.
"It's imperative that management are being proactive in talking to their employees and creating an environment where they feel they can speak openly about how they feel and find the support they need."
With employers grappling with rising business costs, the report offers practical ways to offer support without the need for making large investments.
Recommendations focus on the need for inclusive, proactive measures from management. These include campaigns to tackle stigma, financial literacy programmes, offering flexible working, and ensuring equitable approaches to career progression and access to development programmes, all of which are so vital to giving employees the opportunity to develop the skills they need to enhance their earning potential.
Neglected area
Francine Watson, Global Director of Well-being at Barclays, said: "The authors of this report suggest that financial wellbeing remains by far the most neglected area of an organisation's health and well-being activity, which can have significant impacts on mental and physical health.
"These issues have been brought into even sharper focus by the ongoing cost of living crisis, but the actual circumstances that can create a personal financial crisis remain consistent over time, underscoring the need for strategic long-term approaches to offering support."
