The term ‘financial wellbeing’ is widely used – but what does it mean? It simply refers to financial resilience, confidence and empowerment.

Unfortunately, money worries may affect more employees than you realise. According to a study by Wagestream in 2022, 22% of people have less than £100 in savings to fall back on[1]. Over half don’t have a plan for their finances in retirement.

Why does this matter for employers?

An estimated 13 million worker days were lost due to financial worries in 2021, costing UK employers up to £2.5billion each year[2]. Financial worries can also affect productivity, with 24% of UK employees worrying about money every day in 2022 – a figure that will only increase as the cost of living crisis causes even more families to feel the pinch[3].

With so much on the line, it’s no surprise that organisations are looking for ways to improve staff financial wellbeing. After all, a happier, healthier, highly valued workforce helps create a stronger, more sustainable business.

What can employers do?

Workplace initiatives can help change employees’ relationship with money and pensions. They can also help workers develop the skills and confidence needed to feel more in control of their finances.

Here are The Money and Pension Service’s top seven tips – download their employers guide for more detail.

  1. Use good signposting and education to help build confidence and resilience
  2. Know what’s worrying your employees and encourage them to talk about money
  3. Assess what you already offer
  4. Design your financial wellbeing approach
  5. Target key moments and make support accessible
  6. Decide if you need to use external providers
  7. Don’t forget to test and learn.

The Money and Pensions Service (MaPS) was set up to help people – particularly those most in need – to improve their financial wellbeing and build a better, more confident future. As impartial, government-backed specialists, it has a wealth of research and expertise to draw from.

To read these tips in full and for lots more information including case studies from employers download the Money and Pension Service’s Financial Wellbeing in the Workplace: The Essential Guide for Employers.

 

[1] Wagestream, ‘State of Financial Wellbeing’, 2022

[2] Centre for Economics and Business Research, ‘Financial Wellbeing and Productivity in the Workplace’, 2022 

[3] Wagestream, ‘State of Financial Wellbeing’, 2022