Therese Procter: Ex-CPO of Tesco Bank, announced as Financial Wellbeing Forum Chair

What are some of the main challenges facing UK employees right now? 

Workers in the UK are facing various financial worries that can impact their wellbeing. Some common concerns include: 

• Rising living costs – despite the decline in inflation, the overall cost of living continues to rise, putting pressure on workers' budgets.
• Job security – uncertainty about employment stability and job prospects can lead to financial stress among workers.
• Wage stagnation – many workers experience stagnant wages that do not keep pace with inflation or rising living costs, making it difficult to make ends meet.
• Debt – personal debt, including credit card debt, loans, and mortgages, can weigh heavily on workers and affect their financial health.
• Retirement savings – concerns about having enough savings for retirement and navigating pension options are prevalent among workers of different age groups.
• Housing affordability – high housing costs, including rent and property prices, pose challenges for workers trying to secure suitable accommodation.
• Financial literacy – limited knowledge about budgeting, saving, investing, and managing finances effectively can contribute to financial worries among workers.

We're in the wake of a new government - how do you think this will change things for UK workers?

The central theme of the new Labour government seems to be focused around supporting and championing the frontline worker and the employee. There’s this shift of trying to give some power and autonomy back to the employee and empower them through increasing their job stability, and we’re seeing this from the new employment laws that are going into effect. We’ve already seen a 5.5% wage increase promised to teachers and NHS workers, and we’re set to see improvements around workers’ day one rights, having guaranteed working hours, and the entitlement to more stable working contracts. 

There is a lot of noise around how the government are going to combat the huge deficit of debt that they have, but despite that issue they are exhibiting a keen focus and commitment to the employee and their financial wellbeing that we haven’t seen for a while. 

What advice would you give to employers looking to do more for their team?

I have a few recommendations that I have deployed and feel these, although not exhaustive, are worth considering:

• Offer Financial Education – provide resources and workshops on budgeting, saving, investing, and managing debt to help employees improve their financial literacy.
• Benefits and Rewards Programs – implement benefits packages that include financial benefits such as budgeting tools, access to fairer credit, and easier ways to build up savings.
• Mental Health Support – recognise the link between financial stress and mental health, offering resources like counselling services or employee assistance programs.
• Flexible Work Arrangements – consider flexible work schedules or remote work options to support work-life balance and reduce stress for employees.
• Open Communication – create a culture where employees feel comfortable discussing financial concerns and provide avenues for seeking advice or assistance.
• Feedback and Recognition – regularly seek feedback from employees on their needs and concerns and recognise and appreciate their contributions to the organisation.

By implementing some or all of these strategies, employers can demonstrate a commitment to the wellbeing of their teams and create a positive and supportive work environment.