Financial wellbeing in the workplace

NEW CHARITY

One of my new projects for 2024 is charitable work to enhance financial wellbeing.  As a chartered accountant and a therapist, I have a great interest in the intersection between finance and mental health.  I am honoured to be the first executive of a new charity which will seek to inform, support and advocate in this area, among others.

DISCLOSURE PROBLEMS

When people suffer financial problems, they are unlikely to share their situation with bosses or work colleagues.  Disclosure is difficult.  At work, we are supposed to be competent, and a person may feel that it compromises their reputation to admit that they are having financial difficulties.

Added to this, a person may not trust their colleagues to keep things confidential, or to handle things in their best interests.  Moreover, if the job itself is financially responsible, an employee may feel that they will be considered less trustworthy.

THIRD PARTY SERVICE

One solution is to  offer a third party service, disconnected from the employer, to support any employees in financial difficulties.  Ideally, employees can self-refer, so that the employer need not know anything at all.

Alternatively, at times, it may be suitable for an issue to be brought to an employer’s attention – for example, when something work-related is causing financial difficulty to employees.

FINANCIAL WELLBEING SERVICE

The role of a financial wellbeing service can be threefold:

1. Information (about sources of financial and emotional support)
2. Support (companionship, motivation and co-working on problems)
3. Advocacy (speaking out on behalf of people in difficulty)

INFORMATION

It can take a while to build a good information source.  An employer has to decide what forms of financial support it chooses to offer to employees, and how employees will qualify.  It also has to decide how that information library will be administered and kept up to date, and who will staff it. It may be best if that information source is independent of the organisation, so that employees can enquire without fear of prejudice.

SUPPORT

Support needs to be sympathetic yet practical.  I have spent a career building the ability to combine empathy with practical financial help, and it is not an easy combination.  Staff with mental health difficulties may find it particularly difficult to fill in forms and negotiate benefits and other applications.  In my experience, just having someone else to work with is a massive support to someone negotiating the financial system.

ADVOCACY

Advocacy needs to be strong, yet appropriately confidential.  An organisation needs feedback on what it can do to help staff in difficulty, and yet staff must be protected from being individually exposed as vulnerable.  An advocate also needs access to those in power, whether it be employers, local government, or national government.

It’s an exciting prospect, the thought that more and more organisations might subscribe to an independent unit with a remit to reduce financial suffering of employees, and to make the organisation itself mental-health-friendly in a financial sense.

Here’s to 2024.