Why Does Financial Health Matter?

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The economic downturn caused by the Covid-19 pandemic will exacerbate financial health problems that have been brewing for many years now. Put simply, 2021 will be the year that financial health goes to the top of the agenda for some of the largest employers across the UK.

While mental health strategies are widely adopted by businesses, encouraging people to have the confidence to ‘speak up’, there remains a worrying lack of similar support when it comes to financial wellbeing, so often the source of stress for employees.

The principles remain the same; people that are encouraged to share and engage with their employers will find a wealth of support and guidance available, leading to a happier, more productive workforce.

Money worries are the biggest source of stress for UK employees**

In 2016, the UK economy lost 17.5 million hours to financial stress, equating to £120.7 billion

In 2018, 11% of UK workers reported they had experienced a fall in productivity as a result of their personal financial situation

Absenteeism and workplace illness caused by financial stress costs businesses approximately 4% of payroll costs per year

How can I help my staff?

Recent developments in technology, powered by Open Banking regulations, mean it is now incumbent upon employers to take a leading role in the financial health of staff. Trailblazing employers are empowering the workforce to achieve financial freedom through:

  • Financial education and advice from leading sources, helping people make smarter choices
  • Budgeting tools that provide a real-time view of available funds throughout the month, promoting better financial management
  • Savings tools linked directly to payroll, which improves uptake
  • Early wage access, offering employees a greater degree of flexibility in how they access their salary
  • Better education and information to help people take control of their pensions

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Jemma Waters leads the Responsible Transformation team at Lloyds Banking Group (LBG), working on initiatives to drive positive societal impact and sustainability through technology.

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