Financial wellbeing is a vital part of overall health and happiness, referring specifically to someone’s relationship with money and wealth. It’s not just about pounds and pennies in the bank; financial wellbeing can encompass mindset, attitudes and behaviours as well.
As an employer, HR leader or wellbeing champion, you might be wondering if financial wellbeing is something you should invest in for your people. With the cost of living rising and more employees suffering financial stress, there’s a sound business case to help them manage their money. But you don’t need to do it all alone. With the right financial wellbeing provider, you can offer your employees targeted support that really makes a difference.
In this guide, we explain the ins and outs of financial wellbeing, why you should care about it, and how to pick a provider that gives you maximum return on investment.
Table of contents
Key takeaways:
- Financial wellbeing is a crucial part of overall employee health and happiness.
- Working with a trusted provider can make it much easier and more effective to introduce a financial wellbeing programme in your workplace.
- The right provider will help you identify and target your employees’ key issues, as well as engaging them in varied ways both inside and outside the workplace.
What is financial wellbeing?
Employee wellbeing has reached prominence in recent decades as companies realised that happy and healthy team members are an asset: they need less time off, are more productive at work, and stick around longer. Not to mention, an office full of positive people is just more pleasant to be at!
Besides emotional and physical wellbeing, financial wellbeing has become ever more relevant. The term itself has evolved from meaning simply how educated people are about finance (‘financial literacy’) to bringing in a whole range of factors that can affect how someone feels about and reacts to financial matters.
Maji’s team of experts condensed the major components of financial wellbeing into four key categories:
- Financial resilience: how easily you can survive financial shocks, including job losses, ill health or other disasters.
- Money management: how you deal with everyday spending, saving and borrowing.
- Future planning: how well-prepared you are for your long-term goals, including retirement.
- Money mindset: your feelings about money and how these influence your behaviours.
An individual’s overall financial wellbeing will be made up of a combination of these things. Someone might have a decent savings pot, for example, but feel fear around spending on necessary items; another person might feel confident about money but have no plan for retirement savings.
The importance of financial wellbeing
Money is something most of us need to use and think about on a daily basis, even for something as basic as grabbing a coffee on the way into work, or buying a train ticket. But even though it plays a fundamental role in every part of our lives, it can feel mysterious, stressful or even scary to many people.
That’s before we factor in the impact of money difficulties, from getting into debt to feeling underprepared for older age. With these in the mix, plus the constant stream of doom and gloom in the economic news, it’s no wonder that many people feel very worried about finances. This worry can have a major impact on work, where stresses can easily seep into job performance.
Financial wellbeing can also impact physical health, too. Worrying about money can lead to sleepless nights and symptoms of anxiety. Efficient money management, on the other hand, can free up time and money for gym membership and nutritious foods.
So, investing in financial wellbeing support for your team can help them feel happier and healthier, which can lead to better outcomes at work. And it’s just caring, right?
The role of a financial wellbeing provider
You could prepare resources, run training sessions or even source 1:1 coaching on your own. But do you have the right expertise to do it safely and effectively? Certain types of financial guidance cross into regulated financial advice – and giving regulated advice without proper authorisation isn’t just risky, it’s a criminal offence.
A financial wellbeing provider ensures your employees get accurate, compliant support without putting your organisation or HR team at legal risk.
Finding the right financial wellbeing provider means you’ll have an expertly curated programme that can make a real difference to your employees. Although you will need to make some investment into the service, having everything handled for you can be well worth it.
What does a financial wellbeing provider do?
The exact services from a financial wellbeing provider might vary depending on whether they work digitally or in-person, and whether they are specialist or part of a general wellbeing platform.
Common services provided by financial wellbeing providers can include:
- Educational resources such as blog posts, newsletters and flyers.
- Group sessions such as ‘lunch and learn’ or webinars.
- 1:1 coaching either online or in-person.
- Access to financial experts such as financial advisors, mortgage advisors or will-writing services.
Digital providers might additionally offer:
- An app for employees to access support outside work hours.
- Digital tools such as financial planning and budgeting.
- On-demand workshops.
- Online coaching or expert advice.
- Chat or even chatbot services to answer employee queries.
Some financial wellbeing providers may go beyond educational resources and offer more tangible financial solutions, including:
- Salary sacrifice options such as pension contributions, workplace nursery or cycle 2 work.
- Deals and discounts that can save employees money.
How to choose a financial wellbeing provider
Before choosing your financial wellbeing provider, it’s worth considering a few key questions.
What problems are your employees actually facing?
Understanding where employee issues lie can be key to selecting the right provider. You could run anonymous polling, although it’s worth bearing in mind that not all employees will feel comfortable sharing their financial worries with an employer. A service like Maji, which can collate the anonymous data from your employees’ financial wellbeing health checks on the app, could help you understand their needs in a less intrusive way.
You could also consider overall demographics, as different groups have different financial concerns. You should look for a provider that will help employees where they need it.
For example:
- Younger workers or apprentices: guidance on getting on the housing ladder, managing student loans, or building an emergency savings pot.
- Employees going on parental leave: support with budgeting for leave, understanding parental benefits, and planning childcare costs.
- Mid-career workers: help with childcare, financial planning, mortgage management, and saving for future milestones.
- Older or higher-paid employees: preparing for retirement, investment planning, and wealth protection strategies.
A provider that tailors support to these different needs ensures that financial wellbeing resources actually make a meaningful impact for everyone.
Does the provider offer support beyond the workplace?
Whilst offering an in-person learning session can be engaging, not all employees will be able to take advantage, especially in a busy workplace. A provider that offers tools and resources for employees to access in their own time can ensure ongoing impact. When trying to encourage positive behaviour change, this can be key.
Is support offered in a variety of accessible ways?
Conversely, it’s important to recognise that not all employees will feel comfortable with a totally digital approach to wellbeing. A provider that offers a range of engagements might ensure that the widest range of team members can access help. For example, a provider might offer online courses, videos, blogs, live chat, webinars and 1:1 help from experts, which means some employees can work through materials on their own, and others can get targeted support where needed.
How much do you need to pay?
Most employers will have a limited budget for wellbeing activities, so checking the cost of financial wellbeing support is an important part of planning. Think about this in the context of how much your employees will benefit: are you getting a return on your investment?
Some providers might offer ways to offset your cost, for example by introducing salary sacrifice options. These can help you save on National Insurance costs, with the saving then covering part of the provider fee.
The benefits of engaging a financial wellbeing provider
Working with the right financial wellbeing provider can help your employees:
- Build financial literacy: Financial literacy is the cornerstone of confidence, so breaking down the sometimes confusing world of money management can help employees get their heads around the key concepts and approach their goals with a positive mindset.
- Make big decisions in a supportive context: From paying off debts to buying a home to setting up retirement, the right wellbeing provider can help your employees tackle major milestones with less stress.
- Develop a personalised financial wellbeing plan; Every employee is different, with their own short and long-term goals. A provider like Maji can help them build their own plans, both for day-to-day spending and long-term saving.
- Connect with financial experts: There’s no substitute for expert input when it’s needed. Choosing a provider that can link employees to trusted coaches and advisors can ensure they get the best possible support.
- Feel cared for at work: Making a tangible difference to your employees’ current and future lives can make a much bigger positive impact than ‘Pizza Fridays’. Engaging the right financial wellbeing provider can show that you really care, and not just about the immediate day-to-day.
The role of financial coaching
As your financial wellbeing programme matures, you’ll inevitably consider more personalised forms of support. While educational resources can build financial literacy, they are often not enough to drive lasting behaviour change. This is where one-to-one coaching steps in, providing a transformative, rather than transactional, solution.
To truly improve financial wellbeing, employees need to move beyond simply knowing what to do. They need to integrate healthy money habits into their daily lives. This relates directly to Maji’s core component of money mindset.
Financial coaching achieves this by:
- Addressing the ‘why’: Coaches work with employees to uncover the underlying attitudes, fears, and beliefs that drive poor financial behaviour. For instance, why does an employee overspend despite a good salary? A coach helps them self-identify the root cause and build a solution that works for them.
- Creating sustainable systems: Unlike advice, which can be a one-off transaction, coaching is a process. It helps employees set realistic goals and develop practical systems for day-to-day money management, from budgeting and saving to tackling debt.
- Encouraging accountability: Through regular, confidential sessions, a coach acts as a partner who provides structure and holds the employee accountable for following through on their self-set goals. This structure is essential for long-term habit formation.
By integrating financial coaching into your financial wellbeing platform, you are giving your team the tools for long-term financial control and confidence. This is a powerful demonstration of care that goes far beyond a temporary perk, helping your employees build the financial resilience they need for any life stage.
A provider like Maji ensures you connect your team with qualified financial professionals who are trained in both the technical aspects of finance and the behavioural science of coaching.
Case Studies: Success stories with financial wellbeing providers
Companies of all shapes and sizes are turning to financial wellbeing providers to support their employees:
The growing learning platform
Company X, a growing learning provider, wanted to give employees access to 1:1 coaching and digital tools, while being able to gather useful data to shape further interventions. Maji’s platform offered all this and more. Team members have particularly valued the money dashboard, coaching and access to financial experts.
The midsize fintech
Company Y, a digital solutions provider for financial services, introduced Maji as a way to give their team tools, information and education to build bright financial futures. The financial health check, completed by over 60% of employees, provided a wealth of data to help the people team understand and address their specific issues. They have since introduced unlimited 1:1 coaching for personalised and targeted support.
The large law firm
Company Z, a leading international law firm, were looking for a digital solution that could successfully engage employees over the long-term. With Maji, they found a scalable financial wellbeing option to build team members’ financial confidence, delivered with a custom engagement plan and employee workshops.
Conclusion
Financial wellbeing isn’t just a ‘nice to have’: it’s a core part of employees’ physical and emotional health. Helping your team feel more confident and in control of their money can go a long way to reducing their stress and making them feel valued.
With several contingent aspects of financial wellbeing, part of selecting a provider is looking out for a platform that covers the wide spectrum of support. Additionally, as every employee will have their own financial worries, plans and goals, being able to personalise your financial wellbeing programme is also key. Finally, combining digital resources and personal interaction can ensure that every employee has the opportunity to engage with this vital subject.
To learn more about how Maji’s financial wellbeing platform can support and engage your employees inside and outside the workplace, schedule a demo with the team.
FAQ
Will a financial wellbeing provider give financial advice to my employees?
Financial wellbeing providers can offer a range of support—from general guidance, resources, and education to access to regulated financial advice. Some providers focus solely on education, while others, like Maji, can include tailored advice through qualified professionals.
It’s important to note that regulated financial advice is a specialist service, so not every provider can deliver it safely. Maji ensures any advice is delivered correctly, helping employees make informed decisions without risk to your business.
To learn more about how employers can provide advice tax-efficiently, see our blog on the EIM21803 tax exemption.
Does a financial wellbeing provider help employees save money?
Some financial wellbeing providers may help employees save money through salary sacrifice options, deals and discounts, and support with planning their spending and saving.
Is it expensive to support employees with financial wellbeing?
The cost of financial wellbeing support varies depending on the provider and the type of services offered. Basic resources, workshops, or digital content can be very affordable, while more intensive options, such as 1:1 coaching or personalised financial planning, come at a higher price point.
The key is to work with a provider that can tailor the level of support to your workforce’s needs, ensuring your investment delivers real impact without unnecessary spend.
