Financial Wellbeing is under threat more than ever before due to the precarious situation that many employers find themselves in, partly as a result of the recent hikes in National Insurance costs and minimum wage increases. As this story explains, these pressures are causing some employers to pull back on pay rises while also cutting headcount, while expecting remaining employees to deliver more with less.
Clearly, in this context, Financial Wellbeing of employees needs to be a priority because it is inextricably linked to all aspects of a person’s wellbeing, arguably more than any other pillar because, as Money First Aid co-founder Rachel Harte says:
“If you’re struggling with your money it’s impacting all of your life a lot of the time, relationships, work and everything else.”
Here are some practical ways employers can improve the Financial Wellbeing of their employees:
1. Improve your communications
“Compelling comms, which are honest and transparent, help employees engage with this topic,” says Gareth Hind, Director of Colleague Experience and Relations, First Bus.
2. Think laterally about communications
When you think about ‘comms’ what do you think about?
When I ask interviewees about comms they often immediately talk about posters, or the intranet or an email campaign. However, Hind urges people not to forget the power of a chat over a cup of tea, face to face, in the marketing mix too.
First Bus offers times when employees can come and chat over “free tea and coffee” with him and his team (the ‘free’ is important!). These can be very effective ways to get information across and engage employees in a more meaningful way. Yes, even in the age of AI and screens – perhaps especially in the face of them!
3. Listening to understand
One of the areas Hind is most passionate about (as outlined in this feature) is talking to employees face to face about their situations and money worries, to gain a deep understanding of “what is really going on”.
Obviously surveys can be very useful too, but Hind stresses the power of face to face conversations and data gathering, especially when it comes to a sensitive topic like finances.
4. Break down the stigma around money
The adage goes that you should never talk about sex, religion, politics or money in public, which is one reason such stigma exists around discussing financial struggles.
Talking openly about something is the best way to destigmatise it. As is providing education around it.
Employers can do both these things in comms, and in face to face opportunities.
“People become more comfortable with topics when they actually understand them and know about them,” says Harte.
“That’s why we start with the basics in our training, to start the conversation. You break down stigma by having these conversations. But often you’ll need to give employees the skills and knowledge before they feel comfortable talking.”
5. Communicate about Financial Wellbeing consistently
Little and often is Hind’s mantra here.
He counsels that it’s best to keep communicating around financial wellbeing on an ongoing consistent basis, rather than suddenly having lots of messages around a particular upcoming event or topic, like a webinar.
“It can look tokenistic and random if it comes from nowhere,” he says.
He also advises that you may feel like you’re communicating a lot but, in order for information to be absorbed, it often needs to be seen several times by the recipient. This is especially true of more complex topics like finance can be.
“So it might feel you are labouring the point at times but if you’re too subtle about communications, you risk that they might be missed,” he says.
6. It’s not all about the big things
“Showing we care [about Financial Wellbeing] is not necessarily about big, huge campaigns. It can be about small things, tiny but notable things,” he says.
7. Speak the language of the boardroom
We’ve said it before and, no doubt, we’ll say it again: when trying to secure investment for any wellbeing initiative but, perhaps, especially to do with finances it’s imperative that you speak the language of the senior management team. That means having numbers and ROI models to hand.
“I’m motivated by the positive impact these types of initiatives can have but we are not a charity, we are a commercial business, and we have to demonstrate an ROI,” says Hind.
“But, in my opinion, that ROI can be a human return as much as a financial return, but it needs to be demonstrated. There is clearly an element of ‘this is the right thing to do’ but that can’t be leading the charge.”
8. Pilot ideas
Piloting a new idea, especially if a radical one, is a sensible way to test whether it suits your particular business. This is what First Bus did with Money First Aid training before rolling it out, in January, more widely to 300 employees.
“A pilot also helps us, as the wellbeing supplier, to demonstrate impact with real data. It’s invaluable to work with a small group of employees first, so we can gather real life stories to back up our marketing messages, and also to prepare for wider roll out and ongoing partnership,” says Harte.
9. Create community
We often hear from providers and employers alike that one of the most powerful things you can do to bed-in training knowledge, whatever pillar of wellbeing you’re dealing with, is by creating a community.
This is what Money First Aid is concentrating on in its second year and has just hosted its first community call so Money First Aiders can share best practice and support each other raising awareness of this new role.
“People can share their experiences and so far we have over 50 organisations that have at least one Money First Aider,” says Harte. “Employees are necessarily going to be having those money conversations every single day so there needs to be an element of keeping those skills and engagement up.”
10. Circle of influence
One way to increase employees’ sense of control is to help them focus on, and problem solve around, what they can influence.
As Harte says:
“We can only control what we can control and I think that’s ultimately the best message for individuals that are struggling with money. Unfortunately, we cannot control the inflation rate. Or interest rate. But we do have control over our understanding of them and what we can do for ourselves in our own situations. And, when we don’t know, we have the power – especially if employers help us – to ask someone who does know, for support, so we can improve our situation.”
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