Supporting Employees’ Financial Wellbeing This Christmas

The festive season is a time of joy, but for many employees, it’s also a time of financial pressure. With the cost of living crisis still squeezing household budgets, the added expense of Christmas can lead to stress, anxiety, and even financial hardship.

As an employer, you’re in a unique position to help support your team during this challenging period. By providing financial education, tools, and resources, you can help your employees manage their money more effectively, reduce stress, and enter the New Year on a more stable footing. 

Understanding the financial pressures 

Christmas brings increased financial demands with presents, food, travel, and festive activities, all of which can put strain on already tight budgets. There is also the rise of buy now, pay later platforms, like Klarna and Clearpay, that have made it that bit easier for people to overspend. 

Buy now, pay later services can be helpful tools when used responsibly, but many people don’t fully understand what these services are, how they work, or the risks involved.  

Platforms like Klarna offer financial services similar to credit providers, however, they aren’t regulated in the same way as traditional banks. This means they don’t follow the same strict guidelines around responsible lending.  

In Klarna’s case, they assess your ability to pay by running a soft credit check when you use their services. This doesn’t affect your credit score, but any missed payments or unpaid debts can be reported to credit agencies, potentially impacting your future ability to borrow. For employees already feeling financial stress, these risks can make a tough situation worse. 

The role of employers in supporting financial wellbeing 

Supporting employees’ financial health isn’t just good for them, it can be good for business too. Money worries can lead to absences, reduced productivity, and lower morale. By fostering a culture that prioritises financial wellbeing, you can help your team feel more secure and focused, even during high-stress times like Christmas. 

Here are five practical ways you can help make a meaningful difference in supporting your employees’ financial wellbeing 

1.Providing access to financial education
Education is one of the first steps in giving employees the tools that could help them take control of their finances. Consider offering workshops, webinars, or sharing resources on topics like budgeting, debt management, and using credit responsibly. Secondsight can support you with all the resources you need to start supporting your employee’s financial wellbeing education.

2.Start promoting a positive money mindset
Actively encourage employees to focus on mindful spending this Christmas. Share tips about prioritising needs over wants, setting a budget, and avoiding unnecessary debt. 

Consider hosting a festive-themed financial wellbeing session and try to make the topic engaging and approachable with an open  conversation about money. 

3.Offer Employee Assistance Programmes (EAPs)
Employee Assistance Programmes generally include access to experts on particular subjects, as well as access to counselling and specific support to help employees to manage their wellbeing, whether that is emotional, financial or both. If your company has an EAP, remind your employees of the financial support services available to them.

4.Subscribe to an employee discount scheme
Giving your employees access to get discounts at major retailers could lead to monthly savings that could be spent on essentials.  Secondsight also offer a cost-effective discount voucher marketplace to help employees to make big savings. Contact the team to discover how AspireHub could benefit you and your people. 

5.Recognise non-financial rewards
If possible, consider offering non-monetary benefits to alleviate stress this time of year. Extra time off, flexible working arrangements, or small festive gestures (like a festive meal or gift) can go a long way in boosting morale without stretching budgets.

Time for cultivating a culture of support 

Financial wellbeing isn’t just about tools and resources, it’s about creating an environment where employees feel comfortable seeking help. Open conversations about financial stress can help break the stigma and ensure your team knows support is available. 

Simple actions like sending out regular newsletters with financial tips or creating a dedicated space in your intranet for financial resources, can show employees that you care about their wellbeing beyond work. 

Creating a lasting impact on employee wellbeing 

Christmas is a time for giving, and as an employer, one of the best gifts you can offer is support that genuinely makes a difference. By prioritising financial education and wellbeing, you’re not just helping your employees survive the festive season, you’re helping them thrive. 

This festive season, use the opportunity to move away from short-term solutions and focus on creating a workplace culture that supports financial resilience all year round. After all, a team that feels secure and valued is one that’s set up for success. 

Get in touch 

If you want to work with a knowledgeable and friendly team that can advise you on the most suitable benefits, are easy to work with and want to help you engage with your people, then we’d love to hear from you. Email info@second-sight.com or call us on 0330 332 7143. 

Secondsight is a trading name of Foster Denovo Limited, which is authorised and regulated by the Financial Conduct Authority.