Financial wellbeing worries for employees

Financial wellbeing is now more than ever at the forefront of both employees’ and employers’ minds due to the current cost-of-living crisis.

The cost-of-living crisis

The cost-of-living crisis is putting a financial strain on both people and businesses. However, employers are more optimistic about the future than employees. Increased amounts of employees are experiencing financial struggles and feeling like they have no one to turn to for help and advice. As a result, employers are being reminded to put financial wellbeing policies in place within their business.

Over a third of employees have said that wages are their main worry at the moment. In turn, this is having a negative effect on their mental health. After the stress from the impacts of the pandemic, employees are now faced with further stress which is impacting their mental wellbeing.

Impacts of financial worries on employees

• 38% feel stressed or anxious from financial worries
• 26% reported feeling depressed
• 31% have suffered from loss of sleep
• 21% feel mentally or physically exhausted
• 15% have felt a strain on their relationships at home causing arguments

Is financial wellbeing a taboo subject?

A study has found that three-quarters of employees have never talked about financial wellbeing with their line manager. This is worrying as many employees have concerns about their financial situation due to the cost-of-living crisis.

However, younger generations of workers are helping to break the stigma of not speaking to a manager about financial wellbeing, with 18-24 year olds (39%) most likely to discuss money worries with their manager. Those aged between 45-54 were least likely, with only 12% saying they would discuss with their manager. Whilst this is a good thing that 18-24 year olds are beginning to break this stigma, it is important that all age groups feel comfortable talking about their financial wellbeing.

Employees’ and employers’ concerns

Whilst 70% of employees feel as though they have someone to speak to regarding financial advice. The remaining 30% feel as though they have nobody to talk to about financial struggles which increases worries and concerns.

Employers are recognising this financial struggle with 35% of employers believing that the cost of living is the top concern at work now. Although, despite current circumstances, employers are more confident in the company’s financial future compared to five years ago. In contrast, employees are less optimistic about the future financially than they were 5 years ago, dropping from 44% to 40%.

How can employers support employees’ financial wellbeing?

Employers may think that if they are unable to provide a pay increase to their employees then they’re unable to help at all. However, there are many other ways that employers can support the financial wellbeing of their employees.

• Remind staff of the company benefits that are available that may help them financially
• Ensure that employees are aware of any government benefits that could offer a helping hand
• Arrange for employees to speak to financial experts about worries discreetly and for free, or point them in the direction of where they can find free financial guidance
• Create a financial wellbeing policy that aligns with the organisation’s health and wellbeing policy

We are sponsoring peopleHUB’s upcoming online event in September which will focus on financial wellbeing. Joining us is guest speaker Kristen Cunliffe, MD of Red Star Wealth and she will be discussing how employers can support employees’ financial wellbeing. You can register your interest in this event here.

If you would like to learn more about how oneHR can help you to support financial wellbeing within your company, please contact our team here.

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