It’s Mental Health Awareness week from 15th – 21st May. With so much discussion around financial wellbeing, we look at how you can financially educate your employees and take off the pressure.
Let’s look at some stats from the Financial Capability Survey. In the UK:
- 39% of adults (20.3 million) don’t feel confident managing their money
- 11.5 million have less than £100 in savings
- Nearly nine million of us are in serious debt, and only around a third receive help.
These are shocking figures. It’s no wonder that money worries are seriously impacting our mental health in a negative way. And now, when the cost of living is through the roof, more of us are collectively experiencing these concerns.
Financial education plays an important role in improving employee mental health, from reducing stress levels to gaining confidence in decision making. Let’s discuss how you can educate your people and improve their financial wellbeing.
- Shout about total rewards: Make sure employees understand their total rewards package, including their salary, benefits, and any other perks or incentives. This can help employees understand the full value of their compensation and make well-informed decisions.
- Lose the complicated jargon: When communicating about total rewards, you should keep it simple and straightforward. If you’re using language littered with jargon and acronyms, you’ll make it harder for your employees to engage with something that could benefit them financially.
- Offer financial wellness programmes: Financial wellness programmes can help employees manage their finances and reduce financial stress. You could introduce a series of workshops on budgeting, retirement planning, and debt management.
- Provide access to financial resources: Make it easy for employees to access financial resources, such as online tools and resources that can empower them to better manage their finances.
- Budget flexibility: Some employees may need one-on-one support to manage their finances. Consider offering access to financial counselling services as part of your reward strategy, in-person or online, to help employees develop a plan for their financial future.
By implementing these practical tips, you can actively support employees’ financial wellbeing and positively impact their mental health.