Your employees face financial stresses that many of them are completely unprepared for. The cost of living crisis is affecting people’s day-to-day and longer-term financial wellbeing.
Many people under financial pressure haven’t got the knowledge to make informed decisions. According to the World Bank, one in three people in the UK is financially illiterate.
As a result, employees are turning to their employers for help and support — and they have high expectations of what they will receive.
The cost of living crisis isn’t just a severe challenge for individuals: it’s a major concern for employers. The World Economic Forum’s Global Risks Report ranks the high cost of living as the most severe issue facing businesses over the next two years.
People are your greatest asset but they can also be your biggest risk if they are stressed and unhappy. And the connection between mental and financial wellbeing and business performance is well documented:
of people suffering from mental health issues have financial worries.
of employees say that financial worries prevent them from performing at their best.
money worries are estimated to cost the UK economy £120 billion and 17.5 million hours of lost work.
We can improve the financial wellbeing of your workforce by delivering different levels of support. These components give range to the topics and also type of support available, from one to many, to one to one.
- Our teams offer holistic Financial Education, Guidance and Advice solutions that can support an entire workforce.
- We understand how Financial Education interacts with Mental Health, Physical and Social Wellbeing.
- Our aim is to equip employers and employees with the tools to navigate life's financial challenges and opportunities.
- We provide off the shelf and bespoke solutions which can be co-created with the employer and aim to make a positive difference to the lives of more individuals.
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EducationBuilding knowledge and understanding of core topics, as well as providing support through changes in benefits, career or life, and ensuring that your workforce is prepared for retirement
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GuidanceEnabling your people to make informed decisions about their finances and employee benefits — and what steps to take — through a personal conversation or online journey
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AdviceProviding your people with a recommendation for what they should do, based on their circumstances, to achieve the best financial outcome
Employee engagement is the key to supporting financial wellbeing
Financial wellbeing in the workplace is now a core HR concern as employers seek to support, engage and retain their people.
At Mercer we advocate a holistic approach to employee wellbeing and a structure for financial wellbeing based on four pillars that span short-term challenges and long-term planning:
| Control over day-to-day | Prepared for the unexpected | Freedom to make choices in life | On track for the future |
|---|---|---|---|
| Not overspending income. Debt and expenses are manageable. | Having the capacity to absorb a financial shock. | Including access to resources or financial guidance to improve your situation. | Having a plan for the future and saving towards it. |
Engagement is a vital part of any strategy to support financial wellbeing — during the current challenges and beyond. Changes in the world of work and improved technology allow you to blend traditional and digital methods to educate, guide and advise your employees. Online sessions use 40%-60% less employee time than face-to-face learning, allowing people to get back to their desks more quickly.
If you communicate with your employees, and listen to their changing needs, they will have a greater understanding of your investments in them and the benefits you provide. This in turn should lead to a better workplace culture, potentially improved productivity and greater loyalty.
Money worries are the biggest concern for your people, and supporting individuals in this period can no longer be something that is nice to do. Financial wellbeing is a business imperative and one of the biggest people risks you will need to manage. Now is the time to take action.
Financial Wellbeing Leader, Mercer UK
Getting started on financial wellbeing at work
Some employers are reviewing their existing employee financial wellbeing measures while others are starting from scratch. Whatever stage you are at, you should consider these points:
- Listen to your employees to to identify specific groups who need extra help, and offer them support based on their challenges.
- Supporting your employees’ financial wellbeing doesn’t have to cost lots of money or require a huge effort. Taking small steps can make a big difference.
- If you have measures in place already, remind people they are there. Your employees may not have paid much attention when times were easier.
- Talk to your employees to find out where they need support so that you can direct resources where they will have the most impact.
- If you add products and services without listening to your people you will probably waste money and fall short in your efforts.
The important thing is to get started. At Mercer we can help you direct your resources to achieve the best outcome for your employees’ financial wellbeing and your business.