Wollit guide covering the basics of financial wellbeing from an employer’s perspective with practical ideas on how to start planning and implementing an employee financial wellbeing strategy.
You might have heard the phrase “financial wellbeing” recently. It’s been coming up in news stories, budgeting advice and even mental health info.
As you’ve probably guessed, it’s broadly about how well you’re doing with money. But there’s more to financial wellbeing than the state of your current account.
Uncertainty. Insecurity. Anxiety. When making rent isn’t a given, the possibility of not being able to make ends meet can ruin your whole month.
With the stress of irregular income hovering like a dark cloud, it’s no surprise that many people on zero hour contracts suffer from physical and mental health issues, as well as problems in their personal lives. Irregular work patterns – when your shifts, and number of hours, change every month – are useful in some ways. They can offer flexibility for people who want to study or raise a family. But, if minimum income isn’t guaranteed, it can also mean big problems with cash flow. Those problems can turn into issues in every part of your life.
Income volatility causes unpredictable wild cash flow swings, which corrode financial stability and personal wellbeing. Living with a volatile income is a life of fear and uncertainty. Many are forced to rely on expensive credit to smooth their cash flow shocks, which compound their instability and misery.
Income volatility is also toxic to workplace productivity and economic mobility, a burden borne by employees, employers and society as a whole.