Businesses and individuals are expected to face significant financial challenges as a result of the upcoming “painful” budget for October, which has been described by government officials.
As money-related responsibility increases for all, UK employers have been urged to prioritize the financial well-being of their employees*.
“Financial Stress is Undoubtedly One of The Leading Causes Of Mental Health Issues And Stress At Work,” stated Kieran Innes. Founder & CEO at Stribe.
“The Autumn Budget will cause employees to feel even more anxious about their finances. It is therefore more important than ever that businesses act now to make sure they are more secure.”
Cost-of-living crises have put us all under pressure. Financial Conduct Authority reports that 12.9 million UK adult have a low level of financial resilience. That’s one in four UK adults.
Stribe research shows that employees who are worried about their finances are more likely than others to become disengaged at work, use sick leave, and eventually quit for better job security.
“Employers should be aware that the financial health of their team directly affects their productivity, mental well-being, and retention.
“Supporting employees financially is the difference between having a loyal, thriving workforce and a disengaged one on the brink of burnout,” Kieran said.
Stribe’s CEO says that with rising costs and uncertainty, now is the right time to plan for financial well-being initiatives.
“Financial Support doesn’t mean salary increases or bonuses. Not every business can afford that. But employers can start by offering financial education and adjusting benefits. He said that these are the kinds of steps which will have a huge impact in the coming months.
Stribe encourages businesses to take proactive measures to support the financial health of their employees, as costs continue to rise while real wages stagnate.
- Provide financial education Empower your employees to make smarter money decisions with workshops, webinars or tools that help manage finances.
- Review employee benefits. Consider adding options to benefit packages that will support your financial well-being, such as flexible hours, private health insurance, allowances, or discount schemes.
- Use anonymous financial well-being surveys to check in regularly with employees and understand their concerns about money.
- Mental health support: Recognise that financial stress can affect mental health and provide employees with mental health resources when they need them.
The bottom line is that employees who are financially stressed cannot perform their best. “Businesses that do not act now risk losing valuable talent,” Kieran said.
Supporting the financial well-being of employees is not just a moral obligation, but it’s also necessary for a successful business and healthy workers.
*Stribe provides guidance and research.
stribehq.com
