Financial wellbeing must be top-of-mind when thinking about how to support employees in the post-pandemic world. If it’s not, you may be falling into one of four critical financial wellbeing traps.
Let’s explore the ‘ride it out’ trap
It’s important to note that Covid-19 has created forces that have pushed financial wellbeing up the organisational agenda. But Covid-19 didn’t ‘create’ the need for financial wellbeing support for employees.
Even pre-pandemic in 2018, staff absenteeism and presenteeism caused by lack of financial wellbeing was estimated to cost businesses £1.56 billion each year. So the long-term effects of financial ill-health are considerable, on both individuals and organisation – and the issue is widespread.
Financial wellbeing exists on a spectrum
But it’s also important to remember that financial wellbeing is like mental wellbeing. It exists on a spectrum and is mediated every single day by a huge number of variables, including relationship satisfaction, income, bills, pay cycle, personality and more.
We all have financial wellbeing and so investing in financial wellbeing is only partly about improving financial health: it’s also about providing the tools that empower individuals to control the levers that affect their financial wellbeing on a day-to-day basis.
Which makes it impossible to ‘ride out’ financial wellbeing because it didn’t start with the pandemic and won’t end with it too: empowering people to be the best versions of themselves will always be a thing we must invest in and strive for.
The ‘ride it out’ trap is one of four we explore in our info sheet, “HR’s worst Covid-19 financial wellbeing traps. Download it below.