At a time of continued uncertainty about prospects for future growth, businesses and employees are right to be concerned. Some may be worried about what this means for business funding and others will be worried about the impact to their salary, or worse, the future of their job as a whole. But what role should HR play? How much reassurance and support does a business need to provide to its employees? Especially given that conversations about money can be strained and awkward. Many strongly believe that money is a private issue and would never wish to discuss their finances with another person. This is true, even between friends and family members. So what chance does an HR manager have if they want to speak to employees about personal finance issues? Especially when employees want to maintain a strong, positive image with their employer.
First of all, when it comes to overall job security, transparency is a necessity. The HR department should work with management to reassure employees of their position, or notify individuals as soon as possible if the news is bad. Of course, this is hardly rocket science and any company worth its salt will already be practising in this way. However, it could be argued that the support a business owes an employee who is struggling financially is less clear.
The answer lies in a company’s benefits offering. Despite the possibility of a difficult conversation, it does appear as though employers want to offer support to their employees, especially during times of financial difficulty. In fact, according to research from Barclays, 60% of employers do aspire to a future where they will have some offerings in place to help employees manage their financial situation. The key is to widen employees’ access to financial education and financial services. In other words, financial wellbeing needs to become an integral part of a company’s benefits package.
If HR managers are able to provide employees with information about the types of financial service on offer from the business, such as a salary sacrifice loan scheme, the conversation will serve as an ice breaker which could lead to a more in depth, revealing conversation about the individual’s personal finance situation. By talking through the benefits on offer that might be of interest to them in detail, the employee is able to gain the help they need without having to divulge anything too personal. This will take a weight off of their mind, impacting their overall wellbeing, and therefore, their performance at work.
Of course, an employer is not legally allowed to provide its employees with financial advice. But an HR manager can let staff know which benefits are available through the company so they can carry out their own research and make their own, informed decisions. There is a difference. As well as presenting the options that are available, businesses can also help by widening the benefits package as much as possible. This includes making sure packages are tailored to the different life cycles that people go through. For example, a graduate might be interested in information about how to pay off their student debt and a parent might want to learn about childcare related benefits.
In short, conversations between HR managers and employees about finance needn’t be difficult. If a business takes the time to invest in a great benefits package for employees, and makes the effort to explain this, the conversation should take place naturally. And the more that both parties shake off the stigma surrounding money worries, and embrace transparency, the quicker those financial stresses should disappear altogether.
