Employee financial wellbeing is crucial for productivity and retention. Both of these are suffering as employees feel the pinch. In this blog, we explore five practical measures HR leaders can implement to boost financial wellbeing for their organisation’s people.
In this blog
Support financial literacy and education
Offer flexible pay (earned wage access)
1. Speed up expense claims
Speeding up the process for expense claims can provide employees with quicker access to reimbursed funds, reducing financial stress.
Faster expense claims can significantly improve employee financial wellbeing and satisfaction. By streamlining the expense claim process, HR leaders can help protect employees from being out of pocket. This can be particularly important for those with low or no savings – a significant slice of the population.
Learn more about why it’s time to rethink the traditional expenses cycle here.
2. Enable payroll-linked savings
Implementing payroll-linked savings can encourage employees to save regularly. Automatic deductions from their salary into a separate savings pot make it easy and effortless.
Research from Financial Fairness shows that employees who participate in payroll savings schemes are more likely to have a financial cushion for emergencies. With one in four UK adults have less than £100 in savings, payroll savings schemes are a crucial source of resilience.
See what financial wellbeing experts are saying about payroll savings schemes.
3. Support financial literacy and education
Providing financial literacy and education programmes empowers employees to make more informed decisions about their finances.
Support can include signposting resources like MoneyHelper, workshops, or online courses. Some employers provide access to one-on-one coaching sessions with external service providers.
According to PwC’s Employee Financial Wellness Survey, employees who receive financial education are more likely to feel confident in managing their finances. This improvement in control and peace of mind then has a positive impact on employee productivity and retention.
Find out how exactly financial stress impacts employee performance and wellbeing.
4. Offer flexible pay (earned wage access)
Flexible pay, or earned wage access, allows employees to access their earned wages before the traditional payday. Providing this safety net equips people to better handle emergencies or improve cashflow. This helps to reduce financial stress and improve overall wellbeing.
Employees who have access to flexible pay are more likely to feel financially secure and less stressed. In a study by Wagestream, 72% of those using it reported feel more in control of their finances.
The availability of immediate earned wage access reduces the need to rely on high-interest borrowing such as credit cards or payday loans. More than seven in ten reported using these less.
5. Build in budgeting tools
Offering budgeting tools as part of a financial wellbeing solution can help employees track their spending and manage their finances more effectively.
Integrating such financial wellbeing tools into existing HR and payroll platforms makes them easily accessible.
It’s possible to providing employees with live visibility over their pay and spending in one place. This can incorporate a single view of worked and upcoming shifts, expected pay, and bank transactions.
Empower your people to view, plan, and match income to spending, for more effective budgeting.
Track is the pay and spend budgeting tool in our financial wellbeing platform. See how it works.
Conclusion: Five to help your people thrive
Improving employee financial wellbeing is not just a nice-to-have; it’s essential for any organisation aiming to enhance productivity, retention, and overall employee satisfaction. By implementing these five approaches, HR leaders can create a supportive environment where employees feel financially secure and valued.
Speeding up expense claims gives employees have timely access to their funds, cutting unnecessary stress. Flexible pay options can also ease immediate financial pressures, while payroll savings schemes encourage long-term financial stability. Financial literacy and budgeting tools both empower employees to make more informed decisions. Together, these strategies can materially raise financial wellbeing in the workplace.
Key takeaways
- Speeding up expense claims improves financial wellbeing by reducing financial strain and enhancing satisfaction.
- Payroll savings schemes encourage regular saving by automating savings plans, helping employees build a financial cushion for emergencies and promoting long-term financial health.
- Financial literacy programmes empower informed financial decisions, boosting employees’ confidence and ability to handle their finances effectively.
- Flexible pay reduces financial stress by allowing employees to manage unexpected expenses without resorting to high-interest borrowing.
- Budgeting tools integrated into HR platforms enable employees to track spending and plan for the future.
Take them from stress to success
Get the full set of recommendations and strategies to enhance workplace financial wellbeing – so your people can truly succeed.
