The current cost-of-living crisis is exposing the need for better financial education and healthier money behaviours right across the UK and Ireland workforce. But, more than that, it’s exposing the close links that exist between pay, numeracy, mental wellbeing, and physical health.
This report has highlighted the need for employers to approach financial wellbeing from a behavioural perspective. Focus on providing people with a framework for dealing with current and future financial pressures. Ultimately, it’s about giving people a starting point for a more considered, informed, and proactive approach to money.
The unfortunate reality is that a large proportion of people have a negative relationship with money, seeing it as something that works against them, not for them. They are fearful of money and reluctant to engage with it.
There’s no denying the fact that more effective financial education and wellbeing strategies from employers and government would put people in a better position to weather circumstances like the current crisis. They’d have things in place to help them through the challenges: better knowledge and behaviours, as well as actual savings and insurance policies.”
Perhaps more than anything, therefore, employers (as well as the financial services industry) need to find a way to remove the stigma attached to talking about money. They need to work to create an environment where people are more open to discussing their financial circumstances, and where somebody worried about money can go to their manager for help.
Employers mustn’t shy away from these conversations. While they may not be able to stop people getting into financial difficulties or fix problems when they arise, they can play a critical role in helping people to manage these situations and find a way forward. Where people are feeling stressed and anxious, employers can direct them to the right support for dealing with the emotional impact of financial troubles. It’s often simply about providing people with ways to cope with the worry caused by money, rather than necessarily trying to solve the financial problem itself.
Across all industries, employers are committing themselves to doing more to help employees manage and improve all aspects of their wellbeing. But far too many continue to overlook the role of pay and money on mental and physical health. People need to receive a fair, adequate, and predictable living wage, accurately and on time, without fault. They need the education and tools to better understand and engage with their pay, and to manage their money in an informed and proactive way.
By ensuring that pay is accurate, timely, and accessible to all sections of the workforce, payroll professionals can deliver a starting point for better financial behaviours, protect employee wellbeing, and build trust with employees at a time of economic gloom.
tellmemore@zellis.com0800 042 0315
This is Part 2 of Zellis’ 2022 research on financial wellbeing. Access Part 1 here to learn how numeracy skills and money worries affect UK and Ireland employees.
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