Written by Kate Scott | 23rd January 2023

January can prove a difficult month for many, thanks to the gloomy weather and post-Christmas financial pressures. But the cost of living crisis means this is particularly evident this year, and your employees could be struggling to afford essentials or to heat their homes, which may be taking a toll on their wellbeing.

Aviva’s ‘Age of Ambiguity’ report found that half of workers say that their current financial situation is affecting their mental health. And three quarters of employees who have experienced a reduction in their income said they had experienced additional stress as a result.

In the workplace, there’s several things you can do to support the wellbeing of your people, including:

Training your line managers

If managers are unsure of how to approach the subject of cost of living and avoid it completely, employees may feel wary of opening up to them and asking for help.

Managers need to be adequately trained to address, or at the very least recognise, a mental health or wellbeing issue.

Our Wellbeing Toolkit gives managers practical advice on mental health and wellbeing and the tools to plan proactively, the confidence to identify problems and deal with them, and the awareness to help prevent issues from escalating or arising.

It is common that managers fear they are going to say the wrong thing, training will help teach them how to start the conversation, how to recognise the warning signs and how to find the right resources available.

Wellness Action Plans

Employers must be equipped with the tools to communicate with employees about the risks of stress and mental health issues, and to deal with them when they arise.

One of the most effective tools for achieving this is a Wellness Action Plan (WAP). This is a documented discussion with employees about what keeps them well at work, what are possible triggers for stress, what are signs that they are struggling and agreed actions for when stress or mental health issues arise.

A well-developed WAP gives managers the confidence to know what they need to do if problems occur, gives employees confidence that managers know what can cause stress and how to support them, and should help prevent stress and mental health issues occurring in the first place.

Encouraging your teams to actively participate in creating their WAP helps manage expectations on both sides while opening a meaningful conversation between you and your team members.

Increase communications

In times of crisis, it’s best to be honest – don’t go silent or send overly optimistic messages. Be open with your employees about what you’re doing as a business to manage the challenges of the cost of living crisis, and ask employees for their ideas.

The more you communicate with your employees, the more likely they are to share not just concerns but also ideas and thoughts with you, making for much stronger working relationships and a healthier overall company culture.

Access to healthcare benefits

With more people looking to cut costs to offset the cost of living crisis, offering health benefits can ensure that employees are not neglecting important treatments, check-ups, or health screenings in order to save on their expenses.

Providing your people access to healthcare professionals can make a huge difference if employees are feeling worried or stressed. One example is access to 24/7 virtual GPs. People that can’t attend appointments during work hours because they lose pay if they do, can receive support and help as they need it.

Offer financial wellbeing support

As well as mental and physical health, financial wellbeing comes under your duty of care as an employer. Surprisingly, three quarters of employees say they have never talked to their manager about financial wellbeing. You should be thinking about how you could possibly ease the burden of the cost of living crisis on your employees.

While staff bonuses or one-off payments and increase in pay are an option, this is not viable for every business and you can support your people in other ways such as the option to choose how often they’re paid, loans or financial awareness programmes and training to help them better manage their money. This could be delivered via seminar, workshops, or one-to-one coaching sessions.

Employee Assistance Programmes or EAPs can be an effective tool for supporting wellbeing and resolving financial problems.

You can also signpost employees to external sources such as Citizens Advice, The Debt Advice Foundation or Mental Health & Money Advice.

Taking action and supporting employees’ wellbeing during this difficult period will ultimately support good mental health and protect productivity.

For further guidance and advice around the cost of living crisis, visit https://www.realityhr.co.uk/cost-of-living/ or contact our team at info@realityhr.co.uk.