How employees can support their staff this Debt Awareness Week and beyond

92% of people believe the cost-of-living crisis is the biggest threat to employee mental health in 2023. And recent results from Health Assured’s latest survey highlighted just how much of a concern finances are for people right now.

There’s never been a more important time for us to acknowledge Debt Awareness Week. In the current economic climate, we need to destigmatise debt and normalise discussing finances so we can start supporting each other.

Debt can be easy to get into—but hard to get out of. If you or someone you know is struggling with debt, Health Assured’s Head of Clinical Support Kayleigh Frost has some advice.

“First things first, look out for the signs. Many people can slip into debt without realising the territory they are getting into. What seems like a small chunk to borrow here and there can quickly become a problem—so keep looking out for early indicators. Key signs include your credit card balances increasing every month, only making minimum payments on your credit cards or other debts, constantly living in your overdraft, or struggling to cover the interest and charges on your debts.

“Next, it’s beneficial to confront the issue head on. It can be easy to turn away from uncomfortable issues. But avoidance only creates further anxiety. Try not to turn your back on your bank balance and look in the other direction. When you take the action that needs to be taken, you regain control and put yourself back in the driving seat. What that action looks like can be different for everyone; it could be talking to a friend about your situation, calling a helpline for support or working out your monthly budget and sticking to it.

“Lastly, and this might be the most important point of all, seek support. There are many helplines and support services out there you can access. Your employer may have a financial wellbeing policy that outlines the support available to you, and they may have an employee assistance programme (EAP) that you can turn to emotional, and practical support. Making use of an EAP enables you to access counselling – without the wait times typical of the NHS – where you can discuss any worries you might be facing in a safe, confidential space.”

Alan Price, CEO of BrightHR, iterates the importance of employers having financial wellbeing policies in place to support their people through this turbulent economic landscape:

“As the cost of living rises, it’s no secret that staff are wanting more support. That’s why having a financial wellbeing policy is necessary to reassure your workforce that you can provide that support.

“Such a policy can help staff manage debt and financial problems by outlining the support you offer. This support may be financial, like offering bonuses or travel loans, and also might include emotional support through an employee assistance programme, as Kayleigh has mentioned. This can help staff learn how to manage their finances better and work through their issues with an expert. A policy helps open discussions about financial wellbeing in the workplace too and remove the stigma that has been attached to money talk for too long, so you can learn how best to help your staff when they really need it.”