Financial wellbeing will be the next big employee challenge according to 65 per cent of HR decision-makers.
Scottish Widows surveyed over 500 HR leaders from UK firms who have revealed that financial worry during the pandemic has led employees to experience stress and anxiety, with four in 10 employers saying financial challenges have negatively impacted the productivity levels of their employees.
Employees are increasingly take action to address these issues, with 65 per cent of HR leaders saying workers are now more likely to discuss their mental health concerns with employers. Around half (52 per cent) of employees ow look to their employer for support on matters such as personal debt, the costs of working from home, and saving for retirement.
The research also shows that employers are increasing pensions to help workers achieve long-term financial security with 36 per cent increasing employer contributions and a further 34 per cent planning to do the same within the next two years.
However, only 29 per cent of employers refer their employees to an IFA for financial advice. Over half of HR decision makers surveyed have agreed that companies must do more to ensure the financial wellbeing of their staff.
Scottish Widows workplace pensions director Graeme Bold says: “Huge strides have been made when it comes to addressing mental health at work in recent years, and it’s vital that this also extends to financial wellbeing. The past 18 months have brought unprecedented challenges for everyone, and many people will have seen their finances drastically affected. People who are worried about their finances will often struggle at work and need extra help and support to get back on track.
“Left unchecked, this problem could become a ticking timebomb for both employers and employees. Employers are well used to the idea of investing in support services such as mental health first aiders and counselling helplines. Forward-thinking companies could extend this support to financial wellbeing – for example, implementing a ‘financial wellbeing’ policy or referring employees to an IFA for advice. A solid support system will help workers to build up their financial resilience, in turn enabling them to focus on their work – which will hopefully lead to career progression to further help them financially.
“For employers it’s crucial to take the lead in supporting employees with financial wellbeing and long-term resilience. Fostering a culture of support, openness and engagement will lead to happier and more productive workplaces.”