At a time when people are having to tighten their purse strings due to ongoing economic turmoil, employers are more aware of the importance of prioritising and boosting the financial well-being of their staff. Such support can play a significant role in alleviating the financial strain that many are experiencing, with a recent study showing that the majority (59%) of people believe it is important that their employer has a policy in place to foster their financial well-being.
But when considering ways to support their workforce in this area, it is important for employers to view financial well-being and employee health as two sides of the same coin – that is, they are inextricably linked. Employees in difficult financial situations are more likely to also experience ill health, especially mental ill health, and may also be less likely to seek help or attend screening appointments. Indeed, nearly half (46%) of people in problem debt also suffer from some form of mental health problem.
The pressure on the NHS is huge, and waiting times can have a significant impact on the health of individuals, and increased absence will also affect the productivity of the workforce. Organisations that are able to provide health benefits are able to significantly reduce these anxieties for employees. Therefore, health benefits can have a positive effect on both mental and physical health as well as reducing individuals’ concerns that they may need to self-fund treatment in order to stay at work and further reduce their financial health. Ultimately this can improve staff retention and enhance talent acquisition, so a double win for the organisation.
As such, more companies need to have a two-pronged approach to financial well-being and employee health, ensuring that the help they provide for one is complementing and supplementing their support for the other. Here are a few ways they can do so.
- Provide access to health services
By providing access to treatment for various physical and mental health conditions, employers can alleviate the financial burden on their workforce as employees will no longer have to pay out of their own pockets for these services, depleting their finances and impacting their overall financial well-being. At the same time, employees are less likely to neglect important appointments in order to save money if they know that they can depend upon employer support to help.
Support can encompass many health services but it is most valuable in areas where access can be challenging such as GP and dental services; diagnostic investigations; musculoskeletal, mental health and wellbeing support. Innovative healthcare such as cancer support and women’s health support often includes guidance which can go a long way to helping employees stay at work therefore alleviating financial pressures. Digital services have demonstrated effectiveness in many areas of health and bring ease of access along with the reduced need for travel, which in turn can help to reduce costs for employees.
- Counselling and coaching
With the majority (86%) of those with experience of mental health problems saying that their financial situation exacerbated these issues, it’s important that employees have as much support to help them tackle the emotional strain that can often accompany managing day-to-day finances or tackling bigger financial challenges.
Employers should consider offering access to counsellors and life coaches, including those specifically trained in supporting financial well-being, so that all staff members can receive financial advice easily and free of charge. One-on-one counselling sessions can give them the space to discuss any financial concerns in a confidential setting. Meanwhile, the more targeted, finance-specific counselling will mean that employees can avail themselves of pragmatic strategies to alleviate any issues and boost their financial well-being.
- Courses and resources
Employers can further educate employees on how to improve their financial well-being and resilience, by offering them financial health training courses and self-help resources. Through this, employees can draw on useful tips and strategies for improving their financial situation, and also learn investment and saving strategies, allowing them to grow a long-term healthy financial situation.
When one aspect of well-being is off-kilter, then all other aspects can be imbalanced too. That’s why it’s vital to take a holistic approach to employee wellbeing, considering not only mental and physical health but financial too. With access to healthcare support, counselling, and education, employees can be supported across all aspects of well-being, allowing for financial well-being to be better managed and a stronger financial future built.