Financial wellbeing | Supporting Staff Through the Cost-of-Living Crisis

The UK’s cost-of-living increase has hit the country hard, with inflation levels at a 30-year high. Consumers are paying more for essentials such as food, clothing and transport, leaving less money for recreational activities. Additionally, April’s energy price cap review will see electricity and gas bills increase for most, an extra financial burden.

Workers across the country are being affected by price increases, with 37 per cent considering a job change in light of rising living costs, according to a survey by Totaljobs. Financial concerns and struggles may also cause significant stress in employees, affecting their performance at work. In fact, research by Aegon found workers’ poor financial well-being costs UK employers £1.56 billion annually due to ill health-related absenteeism and presenteeism. Consequently, it’s wise for employers to take steps to support affected employees. Consider these tips:

Be transparent

Money worries are often considered a taboo subject. However, financial stress can negatively affect mental well-being, which, in turn, may affect physical health. Therefore, it’s essential that employees feel able to discuss concerns. Employers should display an ‘open door policy’, encouraging staff to speak confidentially about problems. If employees feel uncomfortable talking to their employer, they can be directed to free, impartial support, such as the Money and Pensions Service.

Being open and honest should apply across the organisation, including those leading the company. Employees won’t appreciate being told there isn’t much in the pot for a pay rise if stakeholders are seen taking additional dividends. Alongside paying a fair and liveable wage, organisations should be transparent about their financial health so employees are properly informed.