Leaders, HR Directors and founders: learn how to build your colleagues’ financial health.
The Covid-19 pandemic has already had a huge impact on our working lives. From working-from-home to trying to juggle childcare and Zoom calls, we’ve had a lot to adapt to over the last year. And the full effects of the pandemic are not yet known. It’s likely that Covid-19 will continue to change and disrupt our routines for a long time to come.
That’s why taking care of your team’s wellbeing is so important. Of course, there are many mental health challenges they can face, in addition to the physical effects of both Covid-19 and being stuck indoors. But have you considered their financial health?
We were delighted to help Benevolent Health address this important point as part of their event in December. Considering your employees’ financial health is more vital than ever: Salary Finance’s research shows that 69% of employees are feeling stressed about money at the moment. We know that, even before Covid-19, money worries cost UK companies billions in lost productivity. So, supporting your employees can boost your business.
What is financial health?
Financial health doesn’t just mean having enough money to survive – although that’s part of it! Financial health incorporates the following:
- If someone knows enough about their finances to make informed decisions (financial literacy)
- Someone’s behaviours around and attitudes towards money (financial capability)
- Having a cushion of money to help weather financial shocks (financial resilience)
- Getting set up for a secure financial future
Supporting your colleagues
These concepts can form a starting point for thinking about how you can help your colleagues become more financially healthy, even during these tough times. Do your team-members know where they can go to learn more about their money? You can signpost them to helpful resources such as The Money Advice Service or Stepchange (for help with debt).
When it comes to behaviours and attitudes, simply opening up the conversation at work can have an impact. Timi Merriman-Johnson, aka Mr. Moneyjar, recommends helping your colleagues develop a monthly money routine. “On the first of each month, I look at my budget, check how much money has come in and gone out, and I record it. Then I make adjustments based on my previous month’s spend.” But he emphasises there’s a positive aspect to financial health, too: “Use money to spend on things you enjoy, or are important to you. These could be things that promote good physical health or giving it to causes you care about.” Do your colleagues have space at work to talk and think about positive financial behaviours?
Heading for a healthy future
Beyond the immediate needs of your team, you can also help them shape their futures. As an employer, you’re already contributing to their pensions through auto-enrolment. But 77% of people don’t understand their pension enough to make an informed decision about their retirement. And 68% of pension savers haven’t increased their contribution beyond the mandated minimum. With Maji’s engaging digital platform, you can empower your employees to understand their pension savings, increase their contributions with a simple click, and improve their overall financial health by engaging with our expert Money Heroes (like Timi) via 1-1s or Masterclasses.
Get in touch with Maji to find out more about how we could help your colleagues improve their financial health.