The 2020s have seen a transformation in the workplace. The pandemic was a watershed moment that helped bring employee wellbeing to the fore: in 2023, 72% of businesses said they were making wellbeing a greater priority.
As well as physical and emotional health, more companies are also considering the importance of employee financial wellbeing. But despite a growing focus on this crucial area, financial stress remains high, with rising costs still causing fear and worry for many.
Something critical is missing. Workplace wellbeing programmes can offer education, resources and tools, but do these result in real behaviour change? Financial coaching could be the missing piece that makes all the difference to your strategy.
Table of contents
Why financial wellbeing matters for your business
Happy employees make for a happier, more productive workplace. Common sense, perhaps, but without the right puzzle pieces in place, solving employee stress can be difficult.
Financial wellbeing is undoubtedly one of those. Studies show that money worries can negatively impact work performance. Employees who are stressed about their finances may experience sleepless nights, distraction from work and even physical illness due to anxiety. There’s also an equality perspective: money worries can hit certain social groups harder than others.
The fallout of high financial stress is costing Britain’s employers over £15 billion annually. And traditional wellbeing approaches aren’t cutting the bill.
Why traditional approaches to financial wellbeing fall short
Traditional wellbeing strategies tend to focus on education. This might look like webinars, ‘lunch and learn’ events or posters in the canteen. Education can be a vital part of helping employees understand and address their financial issues. But on its own, it can be a passive experience. Listening to a webinar doesn’t always result in meaningful action.
Other approaches to financial wellbeing can give more tangible benefits. For example, some companies offer deals and discounts to lower the cost of regular shopping. Others might give extra pension contributions. These investments can help employees feel less stressed by actively addressing some of their financial needs. But take-up of such benefits can remain low if employees don’t understand how to use them.
What’s needed is a personalised approach that tackles each employee’s specific issues, helping them make needed changes.
Why financial coaching could be the answer
Financial coaching sees employees take part in 1:1, confidential sessions with an experienced coach. Rather than giving instruction or advice, the coach asks carefully chosen questions and guides the employee to make their own decisions and identify next steps. They might also discuss the emotional issues and past experiences that drive behaviours.
In this way, coaching can create a bridge between an employee’s financial goals and the actions they need to take to get there. Working with a coach can also provide accountability and break seemingly big steps into manageable chunks. If you have other wellbeing benefits on offer, coaching can also help employees access these.
As employees feel more confident about money, their stress goes down. And that makes for a more productive workplace, where your team members feel truly valued and supported.
What to look for in a financial coaching programme
There are a few things to look out for when choosing a financial wellbeing programme to offer to your employees:
- Experienced, qualified coaches
- Excellent privacy and confidentiality standards
- Accessible and scalable delivery (for example, digital sessions)
- Strong oversight with regular evaluation of outcomes
You might also consider how to keep the positive impact going over time. Coaching embedded into a digital resource, like Maji, can help employees continue working on their goals any time, anywhere. And its useful tools, like a day-to-day spending planner and longer-term financial planner, can support behaviour change.
Driving change with workplace financial coaching
A financial wellbeing strategy can be a key component of your wider drive for employee health and happiness. But simply presenting resources isn’t enough to create real change. You want your employees to be able to use all the tools at their disposal, to build confidence and to take real steps towards meeting their goals.
Financial coaching can be a powerful way to connect with what employees really need. Rather than generic information, they get personalised support on the issues that matter the most. And, most importantly, they are helped to take action. Financial coaching can make all the difference.
If your organisation aims to truly build employee wellbeing, working with a provider who can provide a personalised experience for employees through financial coaching could be worth the investment.
If you’re interested in learning about our model, contact our team here.
