Raising office morale: The value of introducing financial wellbeing perks

Workplace perks designed to enhance financial wellbeing are fast becoming the norm across Britain, with a recent Buck study finding that 81% of companies aspire to achieve a culture of wellbeing. The growing trend is not only being pushed by employers, but also in politics. We caught up with John Deacon at Buck to get his views.

“During 2019, MPs have argued for flexible working to become a legal right for all workers, believing that it could potentially help to alleviate employees’ financial concerns by reducing commuting and childcare costs.  At the same time, employers are focussing on this area , since financial concerns tend to be one of the main reasons that people leave their jobs.

A 2017 survey by Investors In People found that more than half (51%) of job seekers claimed money was their main reason for switching jobs. Additionally, 47% believed that even a slight pay rise would increase their levels of happiness at work.

Even for those not looking for a new job, financial worries can create a great deal of stress. A 2019 study from Close Brothers Financial Wellbeing Index found money worries impacted more than three-quarters of employees (77%) at work, with two-in-five (39%) often or always worried about money, particularly young people.

With the financial wellbeing of so many workers across the UK clearly an issue, offering perks that can alleviate the stress many workers feel can be crucial in persuading staff to stay and raising productivity. But is it really that simple? If so, wouldn’t this have been the norm for a while?

Lower morale, worse results

While it’s difficult to measure the exact impact that poor financial wellbeing has on a business, recent studies have attempted to put a monetary value on it. The Centre for Mental Health found that the overall cost to British employers of stress, anxiety and depression amounted to £1,035 per employee per year, while Barclays estimated that poor financial wellbeing cost employers 4% of their payroll.

Losing tens of thousands of pounds in revenue will challenge most companies, particularly in such uncertain political and economic times, yet this issue could be resolved if employee financial wellbeing was made a priority.

Not only that, but the effects of poor financial wellbeing can extend beyond money alone. If a number of employees are suffering from these issues at the same time, office morale can drop significantly, causing a less social atmosphere and a sense of apathy about helping the business reach its full potential.

Ultimately, without the correct solutions in place to resolve financial concerns, employees will start to look for a new role elsewhere. The prospect of a job which pays slightly more and alleviates some of the stress starts to seem very tempting if a company isn’t doing enough to help its employees in the right areas.

Getting things in order

For this reason, many companies have begun to offer money management tools as a useful perk. Employers who are willing to help staff with problem debt by providing engaging tools to manage their finances better – or, better yet, prevent the issue by encouraging them to save – will have more chance of retaining staff who are more equipped to deal with money worries.

However, money management tools alone will not be enough to secure employees’ financial wellbeing in the long run. Employers would benefit from creating a comprehensive wellbeing structure encompassing both health and financial benefits that can be maintained over time, but which focusses on a framework of personalisation and guidance. Make it ‘real’ for the employee and you’ve solved half of the engagement battle.

But before selecting solutions, data analysis to assess the unique composition and dynamic of the office is often a valuable first step. This will not only give a deeper understanding of the workforce but will also provide insight into what issues exist and thus what solutions to adopt.

Once analysed, solutions can then be sourced to enhance the health and financial wellbeing of employees, whether this is through perks such as free meals, more flexibility at work, enhancements to parental leave or via educational programmes that help employees’ budget more effectively.

Non-stop

Implementing a wellbeing scheme is a skill in engagement. Fail, and the hurdle thereafter may well be set too high. Succeed, and the next step is ongoing maintenance and communications. The key to achieving and maintaining positive employee wellbeing is to continue engaging with staff, breaking down barriers around money and empowering employees in owning their wealth. Once that can be sustained, losses to productivity should start turning into gains.

Constructing an online communications hub will allow employees to ask questions and seek advice or support if and when they need it. Crucially, it also facilitates access during off-work periods, a time when quite often help is sought and is most needed.

Perks of the job

While some perks offered by companies, such as office weekend getaways, will undoubtedly boost employees’ morale, in themselves they are unlikely to lead to long-term productivity gains if the ‘big’ issues of health and financial wellbeing are not addressed. The majority of workers in Britain suffer from varying degrees of money concerns that impact their productivity and, consequently, general business performance.

Bringing in long-term financial wellbeing schemes, tailored to a workplace’s specific needs, may be the best perk to offer employees. In order for the schemes to reach their full potential, however, employers should seek to carry on engaging with staff, help them to take control of their money, and thus maintain their own financial wellbeing. We all have different needs, so playing to that tune may well gain a positive response. And the reason why we haven’t been doing this all along? Technology has become an enabler – affordable and mobile enabled solutions are now at your finger tips.”