Carla, CEO and Founder of Wealthbrite
When it comes to financial wellbeing, the UK is lagging behind its European counterparts. This has dire consequences, not just for people’s mental health (although the Money and Mental Health Policy Institute’s research shows that in England alone over 1.5 million people are experiencing both problem debt and mental health problems) but also for workplace productivity and business resilience.
If your employees are struggling to budget, pay bills on time, and avoid overspend. You can’t expect them to understand how your business makes money or what your clients do. Financial wellbeing has a ripple effect, once your employees understand how to manage their own finances, they can connect with your business’s bottom line. By giving your employees the knowledge they need to manage their finances and pursue opportunities for growth, your company can also contribute to a more equitable society.
A lack of financial wellbeing is more widespread than we realise
Recent research from the ed-tech platform, Wealthbrite, surveying 500 lawyers across the UK has found financial wellbeing in the legal profession is at an all-time low. This has damaging effects on lawyers’ mental health, affecting their productivity and business resilience and putting law firms at risk in a hyper-competitive market.
- 61% of UK lawyers struggle with financial confidence.
- 89% of lawyers at the start of their careers worry about money almost every day.
- 34% of lawyers admit their performance is directly affected by money worries.
This isn’t confined to the legal sector, the Money and Pensions Service found that 24 million UK adults don’t feel confident managing their money.
Financial wellbeing on workplace productivity and resilience
By 2025, Gen Z will make up more than 27% of the global workforce and they have high expectations for wellbeing and training support. While retaining talent is becoming a problem for UK businesses, research from Randstad finds that 72% of people consider training and development crucial for the future of their jobs and Gallup analysis shows that engaged employees require a 31% pay increase to consider leaving for a new role, compared to just 22% for disengaged employees. It’s clear that providing opportunities for continuous learning and development (L&D) needs to be a priority.
L&D programmes focusing on financial wellbeing can help boost your business’s bottom line and improve employee engagement and retention. Employees who feel their company invests in their growth make for loyal teams.
When you give your employees the skills they need to be successful, they can take ownership of their work and see the impact of their contributions. This sense of ownership can be a powerful motivator, leading to higher job satisfaction and reduced turnover.
Additionally, employees with strong financial skills are better prepared to take on leadership roles, enhancing their career prospects and longevity within your company.
Moving beyond outdated modes of training
Providing your employees with financial training is all well and good, but as a subject that has a reputation for being ‘dry’ you need to make sure you’re cutting through the noise. Many employees are struggling with information overload. The Financial Conduct Authority (FCA) has recently recommended that employers and pension providers rethink their communication strategies. Employees are experiencing information fatigue, becoming disengaged from the financial resources they need to thrive.
Businesses can improve training delivery methods by moving away from outdated modes of communication, like emails, and encouraging active participation. Incorporating technology can increase the uptake of the training that’s on offer, and digital tools like gamified modules can make financial and commercial education more enjoyable, giving your workforce the skills they need to thrive in the future.
