Is talking about money problems now harder than mental health?

Is talking about money problems now harder than mental health?

A new CIPD poll among 420 employers in the UK has shown how 49% did not have a policy on financial wellbeing – and that figure was higher (64%) among sectors where staff are traditionally on low pay: retail, hospitality and leisure, catering and cleaning.

At the same time, it was employers in the lower paid sectors who were most likely to admit that their staff finances had been badly affected by the Covid-19 situation. Only 46% said they had looked at exactly how the pandemic might have impacted their people financially, and the problems that might have resulted.  Only 12% said the turmoil of 2020 had led them to introduce a financial wellbeing policy.

Money in mind

In response, the CIPD has questioned whether HR has prioritised mental health – the symptoms of problems – over a likely cause, the practical nuts and bolts of finances.

“For too long [financial wellbeing] has been considered the poor relation to wellbeing but we know the two are intrinsically linked and should have parity,” said Charles Cotton, senior performance and reward adviser at the CIPD.

“While we fully acknowledge how tough it is for businesses right now, with many just focusing on surviving, we think there’s a strong case for employers to be doing more to support their people’s financial wellbeing. It may well be that even light-touch steps, such as signposting to independent money and debt advice, can start to make a difference.” 

Even a taboo?

“Money worries aren’t just something for people who have been made redundant or without work. Figures from debt charity StepChange showed that almost half the people coming to them during the first lockdown were in jobs,” said EAPA UK chair Eugene Farrell.

“There can be a sense of shame and awkwardness when it comes to talking about money problems. We live in a culture where our finances, our ability to be carefree consumers with the latest smartphone, expensive cars and holidays, is used as a very visible measure of personal ‘success’.

“So while it’s become more acceptable to be open about stress, anxiety and depression, in some ways it can be harder to admit that our finances are a problem. EAPs are a critical source of support for employees with any money-related issues or queries, and it will be increasingly important that the financial advice services are promoted to employees in the coming months.”