This year, the trend of workplace financial wellbeing will continue to be a hot topic.
We regularly speak about the positive impact of financial education on employee wellbeing, and how both businesses and employees can benefit long-term. Financial literacy is key for employees to understand their circumstances and make informed decisions, and overcome the stress and anxiety that financial pressures can bring. It can even help employees understand their workplace benefits better. These foundations can set people up for success and break negative cycles.
As money worries continue to be a top contributor to anxiety levels in UK adults, there’s a perceived duty of care on employers to provide support, advice and reassurance. From budgeting and saving to investing and retirement planning, there’s a need for greater knowledge.
Here are some ways you can develop your employees’ financial literacy:
Create safe spaces
It’s important to create a supportive and nonjudgmental environment where employees feel comfortable taking steps to improve their financial literacy. Not everyone will be comfortable in a large group setting or will feel confident articulating their concerns to their manager. Consider tapping into specific underrepresented groups, such as a women’s only group or organise one-to-one drop-in sessions with a financial advisor. If you have an Employee Assistance Programme (EAP), remind colleagues that this service is free and confidential. Your intention is to get people talking and recognising what support they need, so ask questions to find out what’s valuable and useful to them.
Reiterate the importance of planning
From monthly budgeting to retirement planning, forward planning helps us prioritise what’s important and be accountable. Help your colleagues see the value of planning by running a budgeting masterclass with an external provider, or a pensions seminar for different age groups. Many UK adults have little understanding of what their pension means and what they’re entitled to. Provide education around pension contributions and what employees should be doing now to safeguard their retirement fund. Reposition pensions as something interesting, valuable and important. Don’t rely on the pension provider – communications are often long, overwhelming and full of jargon.
Encourage peer networking
For some colleagues, networking with peers can offer fresh financial management perspectives. Talking about their own situations and shared experiences can be a great learning opportunity. Keep your colleagues connected by setting up networking groups, forums, work events or social events based around financial education. This collaboration can help people to feel supported and encouraged and provide you with a way to get regular feedback.
Learn more about our financial wellbeing expertise and get in touch for help with your employee communications.
