Why employers should support the financial wellbeing of their staff
Responsible employers recognise the need to support the financial wellbeing of their staff, not only because it benefits the workforce, but business too.
Financial wellbeing is defined as being able to pay the bills, deal with unexpected emergencies and have the ability to plan for the future.
Feeling confident and empowered about personal finances is key to overall wellbeing and positive mental health.
That’s why many businesses and organisation choose to include financial wellbeing as an employee benefit.
Money worries can significantly cause stress at all salary levels, age and demographics. It can seriously impact on mental health which in turn affects their productivity in the workplace.
Anxieties about money have been associated with ulcers, headaches, back pain and an increased risk of heart conditions.
Research conducted by the CIPD found that one in five employees regularly lose sleep worrying about money, and a in 2020 the Money and Pension Service found that employees with high financial stress took around twice as many days off sick.
Including employee financial wellbeing as part of a company’s benefit strategy can a lead to a number of benefits for the employer, such as:
• Reduced employee stress and anxiety
• Reduced absenteeism in the workforce
• Increased productivity and performance
• Increased talent retention
There has never been a better time to give full consideration to the financial wellbeing of any workforce than now.
As lockdown restrictions ease, substantial cuts to salaries either through furlough or lack of overtime, will see the financial impact of the Covid-19 pandemic hit.
One of the key ways to improve the financial wellbeing of your staff – and benefit the community at large – is by becoming a credit union payroll partner.
The partnership, which is free to enter, introduces staff to the range financial services offered by the ethical saving and loan cooperative.
Staff can access the payroll deduction scheme where they nominate a sum of money to be taken from their salary and placed into a savings account before they have chance to spend it.
It can also be used to pay off an affordable – and manageable – credit union loan.
This means they are less likely to turn to payday lenders or loan sharks for a quick-fix financially which can only lead to further spiralling debts and an even greater negative impact on their personal and working lives.
More than 150 organisations in Wales have entered into a partnership with a credit union in Wales, safe in the knowledge that there is no risk to the employer regarding loan repayments and saving security.