In today’s environment there is increased pressure on finance teams to be on top of their organisation’s bottom line, health of their balance sheets, and the investments that will drive long-term value. But this can sometimes mean people – who often
face challenges that directly impact these metrics – are left behind in the list of the finance function’s priorities.
Financial pressures are becoming increasingly all-encompassing for people and businesses alike. According to Bippit, 50% of
employees say financial stress affects their focus at work and 36% of employees have taken time off work due to money worries.
The impact of financial stress on the workforce is undeniable. But there’s an opportunity here for leaders to take employee financial wellbeing from an add-on to an imperative in the employee experience, ensuring it provides the workforce with a way
to safeguard their mental health and fosters more engagement and productivity.
Setting the right intention
The first step to any strategy should be focused on setting intentional objectives. Leaders need to ask themselves what they want to achieve – are they looking to enhance overall employee wellbeing, reduce absenteeism, or strengthen their employer
brand? A well-defined financial wellbeing strategy will ensure everything is aligned with the business’s broader goals.
Setting these objectives involves understanding the drivers of financial stress for employees. While the cost-of-living crisis has accelerated conversations around financial wellbeing, it’s critical for leaders to understand that poor financial wellbeing
can affect every employee.
A cross-departmental approach is needed to pinpoint where people might be struggling the most. HR can share insights from polls and surveys around what employees truly value; payroll can provide data into common financial challenges; and finance teams
can share detail on any current financial wellbeing programmes including their effectiveness and current usage.
Tailoring financial wellbeing programmes
Once leaders have a clear understanding of their people’s challenges they can match offerings to specific needs. For example, if their insights show that employees feel underpaid for their market value, reviewing wage structures might be necessary.
If there’s a struggle with understanding payslips, offering educational workshops could be beneficial. For employees grappling with budgeting, investing in tools like a real-time payroll engine could be key, providing instant visibility into earnings and deductions.
A key challenge to democratising financial wellbeing across the business often comes down to a lack of financial literacy across employees. Alongside any initiatives, people also need access to solutions like financial coaching which will help equip
employees with the knowledge to navigate their financial situation securely. Internal teams, such as payroll, can also play a role here by sharing learning materials on topics like payslips, tax, or pensions.
It’s all in the measurement
Like any strategy, once a programme is in place it must be continually evaluated. Success will be determined based on the intention and goals set at the beginning of the process. Evaluation can involve surveys and tracking the up-take of the benefits
offered, and leaders can ask themselves a series of questions along the evaluation process, such as: are employees engaging with the strategy? If not, can they determine why? Are overall employee engagement levels improving? Are absenteeism figures showing
improvement?
Equipped with this information they can tweak and refine their financial wellbeing strategy, ensuring it remains a high priority for every employee and effectively contributes to the business’s health.
Taking this approach will help finance leaders move beyond traditional benefits, building a financial wellbeing strategy that supports employees and directly contributes to a higher performing and engaged workforce for the long-term.
