How to have conversations with your employees about financial wellbeing

What is Financial Wellbeing?

Financial Wellbeing is about having the confidence and clarity to manage your finances effectively. You’ll feel in control of your budget, be able to accurately analyse your spending, and understand how to grow your wealth.
By focusing on delivering a financial wellbeing solution, you can help to build a company culture that promotes openness, collaboration, and confidence in discussing personal finances, which will help reduce the effects of financial stress.
How it Impacts Employees

Poor Financial Wellbeing is too costly an issue to ignore. 94% of employees admit that they have money worries and 74% say that these worries affect them at work, leading to 3.6 lost hours every week per employee.
Employees who are suffering from money-related stress and anxiety are costing UK businesses up to £70 billion per year in lost productivity as they’re distracted by their financial worries.
What do you know about your workforce?

Before you implement a new Financial Wellbeing strategy in your company it’s a good idea to start thinking about how your employees respond to current work-benefits and what the culture is when it comes to introducing new, innovative programs.
There’s a high chance your employees are suffering in silence when it comes to their money:
10 million households in the UK have no savings
15 million have no additional pension savings
Over half  million of adults in the UK are living with debt
Conducting an engagement survey

An employee survey will assess and measure how engaged and motivated your employees are at work. It’ll give you valuable insight into attitudes about their work and the office culture. Do they feel invested in the company’s success? Do they believe in the company mission? Employee engagement is an important metric to track as it’s linked to the overall success of the company. Those with highly engaged teams are more productive - resulting in a more profitable business.
Conducting a financial wellbeing survey

Do you know how many of your employees are suffering from money-related stress? Ask your employees to take an anonymous
financial wellbeing survey to highlight their money-related issues, problems, and stresses. You’ll also be able to learn what aspects concern your employees the most - be it debt, lack of savings, or low financial literacy. It’s an opportunity to see what types of financial assistance or company benefit your employees will be most receptive to. If this is something that you need support with, the Bippit team can help.

Discover your benefits uptake rate

Look critically at your current workplace benefits to see what the employee uptake is. What benefits are currently being used the most - and on the flip-side, which are underperforming? Is there a particular financial benefit, like a cycle to work loan scheme, that constantly has a good uptake? Use your employee financial wellbeing survey to understand why this may be, and what type of product or service would your employees appreciate.

Do you have an absenteeism issue?

What’s your current sick leave rate? On average, employees take 6.9 days of sick leave per year. If you are seeing a high rate of employees off sick regularly or who are off long-term, it’s essential you understand why and how ill-health may be impacting their finances. We know that poor financial management is the number one cause of stress in the UK. So it’s safe to assume that money is a contributing factor for some of your employees who have taken time off work because of stress.

Are employees opting out of pensions?

What’s your employee pension opt-out rate? Do people understand the workplace pension scheme? Are they fully aware of your contribution to it? It’s interesting to see how many of your employees are choosing to leave your offered pension plan. You might find that younger, less experienced staff on a lower income are opting out more often than those in middle-management and above.
Review exit interview

Now it’s time to go over previous exit interviews to look for signs of discontent within your business. Do you notice any recurring issues or reasons that people give for leaving? Is it purely down to getting more money elsewhere, or maybe career progression? Where are your ex-employees moving on to? It could be a good idea to compare their future company’s wellness policies vs your own offering. Companies that are rated highly for their compensation and benefits can see a 56% lower rate of attrition. Also, 80% of employees would keep a job with good benefits rather than take one that offered more pay, but no benefits. And, 46% of Millennials say that their loyalty to their employer is influenced by how much the company cares about their financial wellbeing in particular.

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