Tips to promote financial wellbeing in the workplace
High cost of living is a major issue in the UK at the moment, with the average household spending over 80% of their total income on essentials like food, energy and rent. For many people, it can be a challenge to make ends meet, especially when the cost of living continues to rise. As leaders, it’s important to consider the financial wellbeing of your employees, not just provide them with a salary.
It’s important that people are educated with open and honest conversations about financial wellbeing, ensuring it is no longer a taboo topic. Additionally, it is so important to allow and encourage employees to plot an hour in their diary to make some important calls and put plans in place where necessary. This can alleviate a whole load of stress for people who may just need some time to regain control of their financial situation.
With that in mind, here are 7 top tips to help employees manage their finances:
1. Create a budget: Encourage employees to review their spending and create a budget. Keeping track of their expenses will help them to identify areas where they can save money and stay on top of their finances.
2. Make use of discounts: Where possible, provide employees with access to discounts and savings. From grocery shopping to gym memberships, giving employees discounts on essential purchases can help to reduce their outgoings.
3. Use cashback: Introduce a cashback scheme for employees, enabling them to get money back on their purchases. Many retailers offer cashback schemes or loyalty cards, which can help to stretch employees’ incomes further.
4. Offer financial advice and ask the right questions: If possible, provide access to financial advice as well as other resources, such as guides to help them with budgeting and money management. It can be an uncomfortable conversation topic, but it’s so important to openly discuss finances. For example, in your 1 to 1s, is this something you would talk about? If not, it’s really worth thinking about.
5. Prioritise savings: Encourage employees to save whatever they can each month, no matter how small the amounts may be. This will help to boost their level of financial security, and help them to manage their finances better.
6. Manage energy costs: If possible, offer employees advice on how to reduce their energy bills. From switching to renewable energy sources to signing up for an energy-saving scheme, it’s worth considering which options are available in order to help your employees save.
7. Educate about debt: Make it clear to employees that taking out a loan or credit card should always be a last resort. Offering employees access to financial education can help to ensure that they understand the risks of taking on debt, and help them to stay out of financial difficulty. One thing to consider is helping to pay off student debt, as an alternative to uncontrollable pay increases.
If you implement some of the above tips in your workplace, it’s very likely to help people through some really difficult times. Remember: it’s good to talk.