Viewpoint: we need to develop employees' financial resilience
Educating your employees in financial matters can help them feel prepared for the future and more secure in the present, says Chris Lincoln
Is it still true what they say? Money can't buy happiness?
I feel it does buy a lot of the ingredients for happiness, and financial wellbeing plays a vital role in individuals' overall happiness and productivity. However, many employees are facing financial challenges that impact their wellbeing and job performance. So, maybe it's time for us all to help address this issue by equipping employees with financial knowledge and providing support to alleviate monetary stresses.
A large portion of the hospitality workforce has come straight out of school or college where they received no practical financial guidance. Issues such as limited savings, debt burdens and inadequate retirement planning can lead to anxiety and reduced focus at work. If we ignore the issue, it not only hampers employee engagement and productivity, but also exposes businesses to increased healthcare costs and higher turnover rates.
The current economic climate and evolving work dynamics make it more important than ever to prioritise employees' financial wellbeing. The pandemic has underscored the need for financial resilience for us all as people faced unexpected job losses, health emergencies and economic uncertainty.
Addressing this issue aligns with the growing emphasis on employee wellness and holistic benefits, attracting and retaining top talent in a competitive job market.
Adopting flexible payment options and benefits packages tailored to individual needs demonstrates an understanding of the diverse financial circumstances employees face. This approach fosters a culture of trust and loyalty, leading to a more engaged and motivated workforce. Managers should be trained to highlight business support tools while maintaining confidentiality and sensitivity.
Ways to help employees
Financial education programmes Look at providing financial education programmes covering budgeting, debt management and investment strategies. These programmes can be offered through workshops, seminars or online resources.
Benefits packages Companies need to consistently review and optimise benefits packages to ensure they meet employees' diverse needs. Offer financial wellness benefits, such as pension provision and ISAs, or health insurance and health cash plans, which take away the worry of dentistry or medical bills.
The Drinks Trusts support line Callers are entitled to a free 30-minute consultation which can help them navigate the complexity of common financial concerns. The Drinks Trust partners with Money Helper, a government-approved online advice service that provides impartial advice on money and pensions choices.
Employee Assistance Programs (EAP) Integrating financial counselling services into an EAP can provide confidential and professional guidance to employees. If your company doesn't offer EAP, or if you don't feel comfortable to reach out, the Drinks Trust has a free, 24/7 support line available to anyone working in the industry on 0800 915 4610.
Prioritising employees' financial wellbeing is not only the right thing to do, but also a smart business strategy. By equipping employees with financial knowledge and support, businesses can foster a culture of resilience, engagement and long-term success.
Chris Lincoln is the people director at Vagabond
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