INSIGHT: EMPLOYEE FINANCIAL WELLBEING
The IMPACT OF DEBT on the trio of wellbeing – MENTAL, PHYSICAL, and FINANCIAL
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s the COVID-19 crisis progresses towards the recover and reshape phases, many organisations look at new ways of addressing their employees’ changing social, emotional, physical and financial needs. Here, Jenn Stewart, Director & Head of Money Advice at Johnston Carmichael offers some key tips in supporting and maintaining the financial wellbeing of employees.
stress and anxiety, poor financial wellbeing can also influence productivity at work, which can ultimately have an impact on your bottom line. In cases we have assisted with, many of the employees have said that the worry of debt was a regular distraction from their work and as a result, they felt their performance suffered. Some also mentioned taking time off work due to stress. Personal debt is a sensitive topic and as an employer you may feel it is a difficult one to tackle directly. Which is why having access to an external resource providing an empathetic ear and trusted, confidential advice is invaluable. We know that January tends to be the toughest financial month for many people – especially those who opted to put the cost of Christmas festivities and gifts on their credit or stores cards. The bills land on the doorstep, start to pile up, and that is when it begins to feel overwhelming. And that’s why the start of the year is a good time to incorporate financial support and education into your employee wellbeing programme.
One of the biggest challenges for businesses that have moved to a remote working strategy in response to COVID-19 is how to support their employees’ wellbeing. While there are many potential upsides to working from home, the end of the commute and more control and flexibility over the working day, there can also be downsides including insecurity, isolation and anxiety.
Our team has dealt with personal debt problems across all areas from council tax and mortgage arrears, to credit card debts and payday loans. No debt problem is unsolvable, but the earlier people act, the wider the range of options available. 2021 is hopefully going to be the year of progress and good change for many, so why not pop one more thing on to your new year’s resolution list – incorporating financial support and guidance into your employee wellbeing programme.
Your employees are the lifeblood of your business. They help you achieve your goals and they often are the reason you stand out from your competitors. We know that happy employees tend to be more productive, but did you know that personal debt and its impact on staff wellbeing has become a key issue across the UK? During this difficult and unexpected period, our employees are likely to have experienced more financial stress than usual. They may have been worrying about job security, a reduction in income into the household, the inability to meet priority and non-priority debts. Perhaps someone in the household has been made redundant or subject to a wage reduction. There could even be concerns about whether their pensions will be enough for retirement if they make a reduction in payments due to debt related issues. Financial wellbeing is about having the confidence and peace of mind to make personal financial decisions. A number of money worries can affect financial wellbeing at any stage of life, from worrying about paying debts to concerns about saving for the future. As well as causing
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