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25 Apr 2019
by Liarna Whittington

3 steps to help kick start a financial wellbeing strategy

In the current climate we are now more likely to be borrowers than savers. We spend more, borrow more and save less. This macro trend is not just affecting the young or low paid. It is now stretching across the whole population.

Average saving rates are now at their lowest since records began 47 years ago. The Office for National Statistics reports that, those in 1971 were able to save 5.2 per cent of their wage, whereas in 2017 this dropped to 4.9 per cent1.

Whilst low savings may not immediately contribute to financial stress, savings rates are in effect the average gap between income and monthly expenditure. Lower saving rates mean people are more susceptible to any form of financial change in their lifestyle. Whether that is an issue with their car or a broken boiler, with fewer funds this will easily affect the level of stress on a day-to-day basis.

Lack of sleep impacts directly on people’s ability to function. It negatively impacts our brains ability to concentrate, make decisions, solve problems and remember information. These factors are just a few that would significantly alter an employee’s performance in the workplace.

It goes without saying that an increased level of stress means a sharp decrease in productivity. Many businesses already have mental and physical wellbeing programme in place, but if a large section of our population is suffering from stress due to money worries will those programmes be enough?

Developing your financial wellbeing strategy

1. Identify financial stress points - the first step to helping your people overcome any financial stress, is to identify the underlying issues that may be causing financial difficulties. 

2. Inform and educate - build an education programme centred around the key financial stress points in your people’s working lives. Think carefully about how you will deliver your programme, will you use group presentations, one-to-one sessions or will you opt for a more online approach?

3. Provide a solution - where possible, use your employee benefits programme to provide a solution specific to a financial stress point. With a trusted solution, it will make it more likely your people will act to improve their financial wellbeing.

Final thoughts
Changing people’s financial habits take time, education and a carefully thought out plan. Delivering clear education and accessible solutions are paramount for good outcomes, for both you and your employees.

Where possible, use your employee benefits programme to provide a solution specific to a financial stress point. With a trusted solution, it will make it more likely your people will act to improve their financial wellbeing.

In supporting your employees with their financial wellbeing you can raise staff morale, increase productivity, build on your supportive company brand and improve retention levels.

The author is Liarna Whittington, associate consultant at Johnson Fleming. 

This article is provided by Johnson Fleming.

Reference

  1. Office for National Statistics (ONS) 



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