Supporting employees with the cost of living

Employees are often reluctant to talk about financial troubles in the workplace – here is advice on how to identify employees who are struggling and offer them support 

CREDIT: This is an edited version of an article that originally appeared on Business in the Community

Research by Business in the Community (BITC) has highlighted that, during the current cost-of-living crisis, nearly half of UK adults (48%) have said that their household’s current financial situation is negatively impacting their mental health and five-in-10 UK adults are worried about how they are going to be able to afford to pay their bills over the next six months.

With eight-in-10 adults being affected by the cost-of-living crisis, employers must ensure that they are doing everything they can to support their people as the crisis continues, but talking about money is still the ‘elephant in the room’ and, perhaps, the UK’s biggest taboo, with too many people suffering in silence. The BITC research highlights that employees are deeply reluctant to talk about financial difficulties at work, with only 36% feeling comfortable enough to have this discussion. Spotting the signs of colleagues experiencing financial difficulties can be difficult but some signs to look out for include:

• someone who frequently seems to have the latest gadget or new clothes;
• jokes about not having any money;
• a lack of concentration, motivation and productivity.

If a manager suspects that an employee is experiencing difficulties, they should facilitate a conversation to discuss their wellbeing and identify and implement appropriate support. Employers need to consider how they can support their people, this can be done by:

• Ask indirect questions to establish an empathetic relationship with the employee. For example, ‘How are you doing at the moment?’ ‘Your wellbeing is important to me and I’ve noticed that you seem distracted at the moment – are you ok?’
• Introduce a financial wellbeing policy which should be positioned as an integral strand of a holistic well-being strategy. 
• Start to normalise conversations about money worries at work. 
• Show concern and empathy to help to break down any stigma. 
• Train and empower managers to have sensitive conversations, signpost employees to financial guidance, and provide employees with information about how they can maximise their benefits package.

Businesses can also consider launching an action plan to tackle the impact of the cost of living crisis on their employees – you might consider:

• paying the real living wage to employees and contractors;
• ensuring employees have the option to work flexibly;
• understanding the needs of your lower income and vulnerable employees, and how the cost-of-living crisis will impact them.

It has been estimated that the UK will remain in recession for the rest of 2023 and whilst many businesses will be focusing on the next few months, employee wellbeing must be non-negotiable and part of a long-term plan that supports sustainable employee mental health and wellbeing.