Day-to-day finances are the main cause of stress for 18.5 million people in the UK, according to the Chartered Institute of Professional Development. And 25% of employees revealed in another CIPD survey that poor financial wellbeing is a significant cause of their stress.

Until recently, employers often steered clear of getting involved with employees’ finances. Now, employers are starting to realise that they play a vital role in staff financial wellbeing.

It’s more than objective pay

Nancy Hey, Executive Director of the What Works Centre for Wellbeing points out that it’s not just about objective pay levels, although that matters. Hey says: “ It’s a growing area: we see pension auto-enrollment; piloting things like 'side-car savings' to help employees build up an emergency fund; travel or other advance payments.

“There are also more typical Employee Assistant Programme offers that focus on debt and money management, including how to provide support to colleagues who find themselves in unexpected circumstances, such as overtime needing to be cut - some will be relying on this and may need to turn to sources of credit.”

Part of wellbeing more broadly The What Works Centre for Wellbeing advised on the establishment of What Works Financial Capability, which helps identify which financial capacity interventions show an impact. And the evidence shows that there are positive wellbeing impacts of designing better quality jobs - good line management, sufficient pay, role clarity, autonomy, and so on - regardless of industry, skill level, or role.

‘Hidden’ issues exacerbate problem

There are pervasive, but often unacknowledged, issues that contribute to financial stress that can exacerbate the problem. For example, the stigma and the culture of shame that exists around debt can deter people from seeking the help they need.

Financial planning such as pension auto-enrolment and payroll savings schemes could make it easier for employees to save for the future or build up emergency funds for the unexpected.

The role of financial education

Financial education appears to be key.Seventy-one percent of respondents in a MetLife study last year believed that financial education programmes have the biggest impact on enhancing employee resilience and wellbeing.

An evidence-informed boost to financial literacy supports employees to make informed decisions about saving and spending. An employer is in a unique position to help with this.