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5 ways to improve your employees’ financial wellbeing

June 9, 2023

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We’ve all heard the clichés about how material possessions don’t bring happiness – but a lack of them can cause significant anxiety

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In today’s worsening cost of living crisis – with food inflation hitting record highs last year – more and more people are finding it difficult to stay afloat. It’s more important than ever for businesses to support their people during times like these. Thankfully, there are many ways companies can help improve their employees’ financial wellbeing.

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What is financial wellbeing?

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Financial wellbeing is about feeling secure and in control of your finances. It means being confident that you can manage your everyday expenses, cover unexpected costs, and continue moving towards your financial goals. Ultimately, it’s the peace of mind that comes from knowing you’re on the right financial path – without constantly worrying about the future.

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Why is financial wellbeing important for businesses?

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Socio-economic status influences almost every aspect of a person’s life – from mental health to life expectancy. The same is true for your employees. And while supporting financial wellbeing is simply the right thing to do, it also delivers real, measurable benefits for your business.

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In fact, 80% of employees say financial stress negatively affects their work performance. It’s no surprise that, according to the Financial Post, financial stress cost over $40 billion in lost productivity in 2022 alone. Supporting your team’s financial wellbeing can lead to a more engaged, productive workforce, reduce turnover, and increase profitability.

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Further reading: Why you should care about your employees’ financial wellbeing

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How to improve employee financial wellbeing

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There’s plenty you can do to help your team feel more financially secure. Here are our top recommendations:

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Carry out regular pay reviews

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The most effective way to help employees cope with financial strain is to increase their income. While not a novel idea, it’s undeniably powerful. That said, it’s not only about money – it’s also about recognition. Regular pay reviews signal to your team that their contributions are valued, and that their growth and loyalty are being acknowledged. We recommend implementing annual pay reviews as a minimum.

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Provide financial education

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Surprisingly, individuals earning between £10,000 and £30,000 a year in the UK experience nearly the same level of financial stress as those earning £90,000. This highlights how financial wellbeing isn’t just about income – it’s about financial literacy and habits. Offering access to financial advisors or education on topics like budgeting, saving, debt, and investing can make a lasting difference in your employees’ lives.

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Conduct anonymous surveys

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If you want to understand what’s financially stressing your team, ask them – but do it the right way. One-to-one conversations may not yield honest or comprehensive feedback. Instead, run anonymous workplace culture surveys. Thrive offers a range of tools that help you identify financial stressors across your workforce, so you can take targeted action that really makes a difference.

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Provide pay on-demand

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From surprise bills to urgent rent payments, unexpected expenses can leave employees stretched. While raising wages may not always be possible, you can offer flexibility through on-demand pay (also known as earned wage access). This allows employees to access a portion of their earned wages before payday, giving them the control to manage cash flow more easily and avoid financial strain between pay cycles.

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Re-evaluate your benefits and bonus scheme

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A compensation package isn’t just about salary – it’s also about bonuses and perks. Are your current offerings competitive and meaningful? If not, it’s worth making updates. Small benefits – like free or discounted cinema tickets – can ease stress and bring moments of joy, helping employees feel less deprived and more supported.

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