Financial wellbeing: breaking down the last taboo

For most firms, people are their single biggest asset. The one they invest most into, from recruitment or training and development to salaries, and of course, wellbeing. If an employee is well, happy, and engaged, they’re going to be more productive.

Physical wellbeing is in many ways a legislative requirement in the workplace. Taking care of mental health at work – stress, anxiety, overworking, burnout – has rightly become front and centre of employee engagement in recent years, particularly since the pandemic. But there’s a third factor that can be forgotten, which, when in an unhealthy condition, undermines the mental and ultimately affects the physical: financial wellbeing.

“When somebody comes to work, they don't just leave their worries behind,” says Jeanette Makings. Makings is Head of Financial Education at Close Brothers, who have worked with more than 450 businesses to provide financial wellbeing programmes for their people for over 50 years.

“A significant contributor to people's anxiety levels is worry about money,” she adds. “Even before the cost-of-living crisis. Whether you don't have enough to live the lifestyle you want, or you’ve got enough, but you don't know that you're making the right choices or how to best help your family. No matter where you are on the scale, money worries aren’t only about having enough.”

Tailoring content for crises

Talking about money is one of the last great taboos in the UK. But post-2020 lockdowns, people are paying more attention to day-to-day spending. “A greater scrutiny on money isn’t a bad thing,” adds Makings. “As long as it’s taken in the spirit of awareness and control.”

But the problems come when that becomes an anxiety. And the cost-of-living crisis and the increases we’re seeing on things that are outside of our control, “that’s where the anxiety can kick in.”

During the pandemic, Close Brothers created content for its clients to help staff better understand and manage their finances. This focussed on people at home who perhaps weren't struggling with money but were getting used to a different financial landscape because they weren't going to work and paying daily expenses. People who were using the time when unable to go out and do things to do a bit of a financial spring clean and take a financial health check. Alongside that was support on how to cope financially for any potential crisis – what individuals could do themselves and where to get help, for example how to talk with loan or mortgage providers to discuss different payment plans.

Seeing the increases in the cost-of-living early on, Close Brothers knew this would become something that people would want help with. So they added to their resources with some very practical content for employers to support employees in response to the uncertainty, volatility, money management and accessing help.

It’s about taking things back to basics – looking at budgets and working out discretionary from necessary spending to inform short-term decisions for longer-term gains. But also signposting people to the help that’s available to them. That may be through their own employee assistance programmes or internally promoted hardship loans and discount schemes, or it may be highlighting charities and organisations that can help those who have reached crisis point.

Make it okay to talk about money

But not all firms have access to third-party content and advice, and many may have only just begun to think about how they can support their employees to improve their financial wellbeing. “There’s a lot that companies can do themselves,” says Makings. “Communication is key. As much as we’ve seen mental health awareness days and what a difference talking can do – money is exactly the same. It’s not a dirty word. People come to work to get paid.”

Raising awareness of the support that staff have access to is vital. What good is an employee assistance programme, debt counselling, mortgage advice or hardship loans if people don’t know how to access them? “Even if you don't have anything available, refer them to relevant charities such as Citizens Advice and StepChange. And highlight that it’s not okay to just brush it under the carpet. The first opportunity you get if you’re in difficulties, seek help.”

Seeking help is the most important step for any individual. Firms should empower staff to put their hand up when struggling. Makings had a client with an employee in a well-paying sector who got into debt but didn't feel they could talk to anybody. Sadly that person took their own life. “They thought that was the only solution available to them. Every employer we talk to would want them to come and talk to them first, then maybe there’d be something they could do to help them.”

The worst-case scenario is for people to suffer in silence.

Hear more on financial wellbeing, and how you can foster open conversations in the workplace, from Paul Stroud, Senior Financial Wellbeing Consultant at HSBC - as part of our CBI @10 webinar on the cost of living.

If you are struggling with debt and need help you can contact Citizens Advice or StepChange for free advice.