Especially in light of the pandemic, discussions about personal finances are becoming more widespread and increasingly important. Despite previously being somewhat of a taboo subject, financial conversations are becoming more common, even in the workplace.
Due to the current cost-of-living crisis, many people have discovered an ability to relate to one another due to increased financial concerns. Therefore, opening up about money and related struggles is becoming more common. With inflation and the rising costs of fuel and food, many people are searching for advice and guidance to navigate these testing times.
People spend a large portion of their time in the workplace, be it physically or remotely. Employers have an ideal opportunity to talk to their employees about their finances and any issues in a safe and confidential environment. Evidence suggests that the best place to help improve the financial wellbeing of society is within the workplace.
As an employer, speaking openly to your team about their finances and encouraging honest discussions amongst colleagues actively benefits not only your employees but your business too.
Benefits of talking to your employees about finances
Talking to your employees about their finances increases overall wellbeing in the workplace drastically.
Employees who are able to share financial burdens and ask for guidance are more likely to be able to focus on their work tasks due to decreased stress. This reduces the issue of poor mental health in the workplace and increases business productivity. Research shows that 26% of 2,651 employees say that they are less productive in the workplace due to financial worries.
Another key benefit is decreased employee absenteeism and turnover. This can be costly for your business and time-consuming for you and your leadership team who have to organise interviews and induction processes for new employees. Financially stressed employees are said to be almost 2.5 times more likely to search for a new job and take an average of 15.5 days off work per year. Those who are happy and relaxed in the workplace are less likely to suffer from stress-related illness, and as a result, benefit from fewer days off work. This maintains continuity within your departments and ensures that tasks are completed efficiently.
Moreover, employees who feel valued by their employer are more likely to show loyalty to the business and remain in their role for a considerable time. In fact, nearly 80% of employees who responded to a recent survey stated that they would prefer to have an employer who cares about them rather than a 20% pay increase.
Another benefit of discussing finances with your employees is getting to know your team on a personal level, therefore building a good rapport and trusting relationship. Your employees are more likely to try their best and be invested in the success of your business if they feel appreciated and supported. Being a valued and respected employer will help you to attract and retain top talent in a competitive employment market. 72% of workers who faced increased financial stress during the pandemic are attracted to workplaces that care more about their financial wellbeing than their current workplace.
The drawbacks of avoiding conversations about money
If as an employer you avoid engaging in conversations with your team about any financial concerns that they have, you risk them looking for another more conscious employer who better cares about their financial and overall wellbeing.
With a large emphasis on mental health in the workplace, taking care of your employees’ best interests whilst providing them with access to benefits and resources to support their financial wellbeing is vital. Ultimately, being an approachable and caring employer is good for business.
How Mintago can help
Starting conversations with your employees about their financial situation and any problems that they are facing can be daunting. However, Mintago’s comprehensive financial wellbeing platform allows your employees to take charge of their money now and in the future. By providing your team with access to Mintago’s wealth of educational tools (including journeys which support them through various financial life milestones) and the pension hunter feature, employees can take actionable steps to boost their knowledge and make better financial decisions.
Within the benefits section of Mintago’s financial app, employees can access useful resources such as talking to a financial adviser for free and gaining help with debt management.
By starting to talk to your employees about finances, you will foster a healthy and appealing workplace on the way to tackling the issue of the financial wellbeing of employees as a whole.