By Dr Julia Lyons Senior Clinical Lead Onebright
This is Debt Awareness Week. The theme this year is to break down the stigma associated with debt.
In recent years, the number of people in debt has increased. In 2023, 8 million people or 15% of the UK’s population will need debt advice. They are usually under 35, living in low-income households, with children, and from underrepresented communities.
Debt can pose a serious challenge to some people, and worrying about finances can lead to mental problems such as anxiety, depression and stress. Over 1.5 million people are suffering from both mental and financial problems in the UK, according to research. Only a third of those in debt receive any help.
You must provide comprehensive financial support for people who are struggling and direct employees with financial difficulties to the right services. You may see some of these signs in your workplace if you are stressed and worried about finances.
Taking an unusually long time off from work
Reduced Tolerance: Overreacting to Situations in the Workplace
Pessimism Focusing too much on negative aspects of work
Performance Issues: Struggling to Concentrate or Complete Tasks Day to Day or By Set Deadlines
Isolation decreased social skills or less interaction with colleagues, concern about what other people think
Low self-confidence: a lack of confidence in one’s career or career advancement
Four ways to help employees who are struggling with finances at work:
- Open culture is one in which employees feel comfortable to openly discuss their feelings and concerns with their HR leader or line manager. Ask the person what they need. Consider signposting employees to organisations which specialise in money and debt advice, such as https://www.gov.uk/debt-advice
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Consider ways to support your employees financially. You could also consider other forms of support if your company is not able to offer pay increases or bonuses. Consider salary sacrifice schemes, like electric car schemes or cycle-to-work schemes.
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Encourage strategies that promote mental health during difficult times. Work/life balance can be achieved by creating a culture in the workplace that encourages employees’ involvement in activities they enjoy and that give them a sense of satisfaction, accomplishment, and closeness. Encourage mindfulness in the workplace, where individuals can learn to observe worrying thoughts but not react.
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Good practice model: If you take care of yourself, are compassionate and open to your employees about your actions then you empower them to do the exact same.
There are many techniques that can help your workers deal with stress and worry over personal finances, such as Cognitive Behavioural Therapy. CBT helps people learn how to control their negative thoughts and to implement positive behaviour changes to improve their wellbeing.
The original version of this article, Debt Awareness Week – 4 ways to help employees who are worried about their finances, first appeared in HR News.
