Many employees across Britain are struggling with their finances amid the cost-of-living crisis, and employers are being urged to do more to support them, including providing access to financial advice.
These are among the findings of research carried out by fintech Mintago, which found that 40 per cent of workers have discussed personal finances with a manager.
Mintago said 87 per cent of managers had been approached by an employee in the past 12 months to discuss concerns relating to their wellbeing.
Thanks to advances in technology, financial advisers can offer much more tailored advice to all people.James Tucker, Twenty7TecFinances came third on the list of employee concerns, according to Mintago's survey of 503 senior managers in UK-based public and private sector companies.
Mental health was the biggest topic of discussion at 48 per cent, while job satisfaction came in as the second largest concern at 43 per cent.
Mortgage payments
But despite these issues, only 33 per cent of managers said their organisation had a clear process in place for handling these concerns.
Financial concerns may be the one area where employers can make a difference, although 47 per cent of managers said they felt uncomfortable discussing financial wellbeing issues.
Main financial concerns of employees as mentioned to managers | % |
| The cost of living crisis | 68 per cent |
| Requests for a pay rise | 50 per cent |
| Fears over keeping up with rental or mortgage payments | 46 per cent |
| Worries about debt | 43 per cent |
Source: Mintago
Chieu Cao, chief executive of Mintago, said: “We should not be surprised to see financial wellbeing concerns on the rise. The cost-of-living crisis has been an assault on people’s finances.”
Cao added: “Almost nine in 10 managers across the UK have had an employee come to them with wellbeing issues, with financial wellbeing one of the most common.
“Ignoring or downplaying these concerns – no matter how uncomfortable they may be to talk about – risks not only the health and happiness of employees, but also the overall productivity and success of an organisation in the long run.
"It’s time for leaders to build a culture that allows their workforce to raise concerns with confidence, and then back this up with robust tools that deliver support in the areas employees most need it.”
How to help employers improve financial wellbeing
According to financial services commentators, managers need to feel confident enough to deal with the financial concerns of staff - without giving advice.
The Money Advice Trust runs training courses to help managers and organisers support staff in financial difficulty, for example.
Jonathan Rennie, employment partner at UK law firm TLT, said companies also try to normalise conversations about money.
He added financial advisers could work alongside employers to help with longer-term solutions. “For example, they might suggest introducing an employee hardship fund, which will help employees and their dependents.
“This is essentially a fund to support staff who are struggling to pay their bills. It’s important that these are accompanied by a robust and unambiguous policy setting out how the fund can be accessed by employees."
All of these small things cumulatively can make a huge difference to someone’s financial wellbeing.Jonathan Rennie, TLTAlso, while employers might not be able to increase wages, there are things they can offer to make their employees money go further, added Rennie.
“Fringe benefits – discounted food, cycle to work schemes, season ticket loans, free eye tests," he said. “All of these small things cumulatively can make a huge difference to someone’s financial wellbeing.”
Graham James, director at employee benefits consultancy Pluxee UK said its research had shown that employees can potentially benefit by up to £1,679 through cashbacks and savings offered by employer-provided schemes.
“Additionally, investing in benefits such as employee assistance programmes and access to independent financial advice is crucial. These measures not only reduce stress for employees, but also play a vital role in attracting, retaining, and engaging talent.
“Anonymous employee engagement surveys and one-to-one conversations provide valuable insights that help decision-makers understand the issues at hand.”
Signpost financial advice
James Tucker, chief executive of Twenty7tec, said companies should make use of financial planning tech, such as apps to keep their staff engaged in longer term planning.
He said: “Often people, who haven’t had financial advice, worry that it’s only available to a certain wage bracket but this is far from the truth. Thanks to advances in technology, financial advisers can offer much more tailored advice to all people.
“And this financial advice comes in handy, especially when people have concerns over their finances.
"The bottom line is that advisers have a crucial role when financially challenging times arise because advice becomes more important than ever.”
Samantha Downes is a freelance financial journalist
