![SF Announcement](//images.ctfassets.net/5gwys9m2e7bh/2fGqv4cBknFnv5KhoFx8Ss/3cfcc7d823b8997bbcedbe41f5176805/announcement1.gif)
# Global workplace finance platform Salary Finance has acquired Neyber in a deal completed on 9 March 2020. 


The acquisition creates the UK’s largest employee financial wellbeing platform.  Salary Finance will now serve 500 client partners and reach 3 million employees. The client combined portfolio includes 15% of the FTSE 100 and many household name employers, such as BT, Dixons Carphone, Virgin Active, Co-op, Asda and public sector organisations including NHS Trusts and Police Forces.  
 
As a result of the acquisition, 1 in 10 UK employees will now be able to access Salary Finance financial wellbeing solutions through their employer. 
 
The acquisition was structured as a pre-pack administration, with Neyber assets acquired by Salary Finance and staff transitioned under TUPE.
 
The acquisition of Neyber, which was founded in 2014, will create a larger scale operation benefitting from expertise within both organisations.
 
Salary Finance will now provide the broadest set of employee financial wellbeing products in the market, including salary-linked savings and investments, loans, on-demand access to pay, protection insurance (income and critical illness cover) and financial education. In partnership with Nest and HMRC, Salary Finance also provides a pension savings sidecar product and access to HMRC’s Help to Save product linked to payroll.
 
Police Mutual will join Salary Finance as a new investor as part of the acquisition. Goldman Sachs, another former Neyber investor, has also joined Salary Finance as an investor.
 
Existing investors Blenheim Chalcot and Legal & General continue to invest in and support the business. Salary Finance also operates across the US, where Goldman Sachs is well positioned to support business growth.
 
Asesh Sarkar, Salary Finance Co-founder and Global CEO, commented: 
> “We are delighted to welcome the Neyber team and clients to the Salary Finance community, and thank the Neyber founders Martin Ijaha and Monica Kalia for building such a strong team and helping to create a category that hundreds of employers credit with helping the lives of their staff. 
> 
> “The Salary Finance mission is to help millions of employees around the world become financially healthier and happier. The Neyber acquisition, and the additional scale that gives us, takes us several steps forward in achieving our mission. We are excited to get to know and work with our new colleagues and clients.”

The transaction marks a milestone in this high growth sector and enables Salary Finance to invest further in product innovation to expand on the existing product set – an aim central to the firm’s goal to create the best solutions for improving employee financial wellbeing.
 
Research shows employers are increasingly focused on employee wellbeing, but that 36 per cent of UK workers have money worries directly impacting their performance at work. In fact, Salary Finance research shows that those with money worries are 14 times more likely to suffer from sleepless nights and four times more likely to be suffering with depression and anxiety.

Asesh added: 
> “Salary Finance addresses a social problem, and market failure, where 40 per cent of UK employees have no savings, and over six million employees have been refused a high street loan, leaving them little option but to take high interest debt. We address this issue at scale, with products which are better value and create better financial habits, such as auto savings-linked directly from pay.”

Salary Finance loan customers typically save £600 in interest, they pay off their debts six to 12 months sooner and see a five to 10 per cent increase in their credit score.

Neyber’s existing customers should continue to make loan repayments in line with their existing agreements, if any action is required they will be contacted by a representative of Salary Finance.  

salary-finance-logo

FinTech Salary Finance acquires Neyber, creating UK's largest employee financial wellbeing platform

This year, our DNA of Financial Wellbeing research went further than ever before. We surveyed over 11,000 employees, spanning the length and breadth of the country across all industries. We also heard from more than 700 employers on their views about financial wellbeing in the workplace.

In total, over the past four years that we’ve run the DNA of Financial Wellbeing Report, Neyber has heard from over 42,000 people, making DNA the largest research of its kind. 

### [ Click here to watch the webinar which runs through the key findings from this year's report](https://www.gotostage.com/channel/4523caedb4f3484680079459388443db/recording/992659cccbba49f3920d55d7c6f87d86/watch "DNA of Financial Wellbeing 2019 / 2020 Webinar")

It’s fair to say that when this journey began, and when Neyber began in 2014, financial wellbeing wasn’t a term that many employers would have recognised. But fast-forward to 2019, and we have moved from "What is financial wellbeing and should we be doing it?" to "What's the best way of doing it?"

# State of the Nation
- Most employees struggle to reach payday
- Higher paid employees impacted too
- Financial worries impact stress, anxiety, sleep and depression

Financial worries are once again the top concern of UK employees, with three in five individuals feeling the strain this year. What’s more, they’re worrying about their later life and retirement too – this is their second biggest concern. 

Not surprisingly, financial worries are taking a toll on people. One in three employees have felt stressed, one in three have felt anxious, one in four have lost sleep and one in five have felt depressed.

Those impacted are not just lower-paid, as people with the highest salaries are worrying too. Monica Kalia, our Chief Strategy Officer and Co-Founder, said:

> Across the UK, an estimated 20.3 million workers are affected by money worries. And these worries are not just confined to the young or lower paid in the workforce. Although money worries do decrease with income, almost half (46%) of employees earning over £70,000 per year are affected too. Nearly half of those aged up to 64 are saying they are affected by money worries.

## Money worries are not just a low-income problem; this graph shows people in each income group who say they are affected by money worries.

![unnamed](//images.ctfassets.net/5gwys9m2e7bh/1GRLGCVvUAnGdJdk9ULcPb/ec0898820634dc28d916677d22ea3ee1/unnamed.png)

Just over half (52% vs 50% last year) of those researched have to borrow money to meet basic financial needs. Twenty-seven per cent use credit cards to get by, building on the issue regularly. Just 2% borrow from their employer, perhaps through a loan or payroll lending.

On top of this, many employees can’t save because they don’t have the spare income. This can cause issues if something unexpected happens and can lead to more debt. Of those with no savings, 80% have debt to repay.

Our report also shows that:

- For those who have debt, the average amount is £7,555, around a third of their annual salary.
- 36% say they sometimes or often struggle to pay off credit cards.
- 45% run out of money between pay cheques.
- One in three people have £1,000 or less in savings.
- One in four people don’t save regularly and of those that do, the most common amount saved is less than £50 each month.
- One in four people would be able to cover their regular expenses for less than a month if they lost their income.

## Later life is a big worry too

The DNA of Financial Wellbeing 2019/2020 shows that employees aren’t just worrying about today. Later life and retirement plans have risen in importance from third to second place in the biggest concerns of employees, taking over from physical health which was last year’s second biggest concern. Just one in three employees believe they can look forward to a good lifestyle in retirement and nearly a third (29%) aren’t aiming to save for retirement.

# Employers are starting to get it
Employers have started to recognise how important financial wellbeing truly is. Nearly three-quarters now have a financial wellbeing strategy in place - although only around half are confident that it is well-developed. 

More concerningly - employers seem to be doing this as a 'nice to have', or something that benefits only employees. This year's research showed the cost that poor financial wellbeing has on the UK economy:

- 1.6 million employees taking time off work; costing £478 million
- Nearly 3 million employees struggling to focus at work; costing £516 million
- 3.6 million employees looking for a new job because of money worries; a potential cost of £14.2 billion in turnover.

Ultimately, not prioritising employee financial wellbeing could be costing UK employers a grand total of £15.2 billion each year.

# Fixing the problem requires deeper understanding

To understand employee financial needs, we have developed five financial wellbeing stages for every individual, regardless of age, income or gender. Almost half of British workers are in groups one to three. The groups are:

1. Getting started – where employees tend to run out of money before pay day.
2. Taking control – where employees may need to borrow, and struggle to pay off credit cards.
3. Finding balance – employees aren’t borrowing to meet financial commitments, but they are still paying off credit cards and don’t have enough of an emergency savings buffer
4. Building resilience – employees are in control of debt they have and feel they have enough for things they enjoy; they have an emergency fund to cover at least three months’ wages.
5. Planning ahead – employees are financially comfortable, with savings and retirement plans in place. They may be investing and can spend money without causing a financial strain.

Providing support that is relevant to the differing needs of employees is an important part of an employer’s support. Financial wellbeing is not just about paying off debt, but about ensuring employees feel in control and confident about their future as well.

[To find out more, click here to download your copy of the report.](https://cloud.e.neyber.co.uk/DNA-2019 "DNA of Financial Wellbeing download page")

DNA 2019 / 2020 Cover

Our latest research: The DNA of Financial Wellbeing 2019 / 2020

We spoke to Peter Simpson (pictured), CEO of Anglian Water Group, about how the company supports financial wellbeing.

## Q: How are you feeling about the recent award win at the Employee Benefits Awards 2019? Why do you think Anglian Water took the top spot for best financial wellbeing strategy – large employer?

We are delighted to be recognised by the Employee Benefits Awards for our financial wellbeing strategy. We have worked hard to ensure that our financial wellbeing programme meets the needs of our multi-generational workforce, and this award is recognition of the team at Anglian Water, but also our financial wellbeing partners, Neyber. 

## Q: Can you tell us a bit about why Anglian Water have decided to focus on financial wellbeing as part of its overall wellbeing strategy? What has the response has been like from your employees?

We recognise the stress and anxiety that can be caused by financial worries, so our mental health programme has included a focus on this issue. Our wellbeing team has worked hard with Neyber to ensure we have a fully integrated plan. We have introduced education to help colleagues better manage money, offer low-cost loans, and a loyalty savings scheme to help employees make regular savings. Almost 30 per cent of our employees are in one or more of the schemes, with a total saving amount of £3.2m per annum. Since we launched these schemes over 300 applications have been made for loans, of which 60 per cent – more than 180 employees – were consolidating debt, helping them create better financial security. About 1,200 – more than 30 per cent of employees – visited the Neyber site for education, with 876 downloading podcasts and videos. We also launched a new employee benefits portal in early 2018 to allow employees more flexibility when it comes to their benefits, so they could make choices that better reflect their wellbeing needs.

Offering such support means that employees can take practical steps to change their situation, which helps with their feelings of anxiety. Often employees can make a big difference to their finances, and this can be a big relief.

## Q: We speak to a lot of organisations that are keen to do something to support employee financial wellbeing, but aren’t sure how to go about it. What advice would you give in terms of getting started? What do you think are the most important first steps?

No employee is the same and neither is their financial situation. A range of financial wellbeing benefits will be needed to be relevant to all of your employees. In doing so, you can increase productivity, job satisfaction, and significantly decrease stress.

Working with BITC we started to work on our wellbeing strategy as one whole proposition. We learned from other companies sitting around the table with BITC and began embedding really great ideas that have worked at other organisations into what we do as a business. We now take an approach that involves our entire organisation and include the mental, physical, social and financial aspects of our employees' wellbeing. We also engaged with our unions in our approach.

At Anglian Water, financial wellbeing isn’t a one-size-fits-all programme. We recognise that our employees have differing needs and our programme is tailored to offer a spectrum of financial support, from loans to pension workshops. Our workforce is so diverse we ensure that we use different communication vehicles to ensure we reach everyone.

Working with a financial wellbeing partner adds many benefits. We work alongside Neyber to ensure our financial wellbeing programme offers the support needed for a wide range of employee needs, and dealing with an external partner means that our people are less worried that we will know their financial issues. Many employees wouldn’t think of turning to their employer for financial advice – you need a clear and positive message to cut through the assumptions out there.

And, lastly, be bold. 

## Q: Lots of companies struggle between the conflict of implementing wellbeing strategies simply because it’s the right thing to do to look after their employees, and wanting to measure a tangible return of investment for their business? Where do you stand? 

We have a fundamental belief that looking after our people is the right thing to do, but also from a business point of view if our colleagues are fit, well and safe they are likely to be more productive and deliver a better service to our customers.

Wellbeing is absolutely fundamental to how well Anglian Water is performing. It is about creating the right environment to set our employees up for success. 

## Q: What steps do you think are needed to ensure Board-level buy-in for wellbeing initiatives? How important do you think their buy-in is to overall success?

Our senior leadership team drive our wellbeing strategy, having received independent training through our award-winning Transforming our Leadership programme, which includes a module focused on personal resilience and supporting teams. Leaders build health, wellbeing and safety into reviews during site visits and track findings on our Active Management app. Health, safety and wellbeing – known as Happier, Healthier and Safer – is the first item on every team meeting agenda.

## Q: What are you planning to do next in terms of your financial wellbeing strategy and wellbeing more broadly?

We have regular reviews with Neyber to evaluate the support and programmes we have in place to support the financial wellbeing of our employees. This offers us valuable insight into the needs of our employees and allows us to better target initiatives base don employee need.

We have also undertaken a review of our in-house flexible benefits programme to look at the take up of flexible benefits since the programmes inception in early 2018, and to determine what additional benefits we can offer our employees to better suit their wellbeing needs.

Neyber LinkedIn – anglian water

Anglian Water on financial wellbeing: 'Offering support means that employees can take practical steps to change their situation'

Shaun Davis - Global Direction of Safety, Health, Wellbeing & Sustainability at Royal Mail Group – and his team were recently recognised and rewarded for their award-winning mental wellbeing strategy at the Employee Benefits Awards. Neyber and Business in the Community (BITC) discuss an employer’s duty of care and responsibility when it comes to the wellbeing of their people, as well as Royal Mail Group’s road to success. 

## Q: A huge congratulations on the recent award win at Employee Benefits Award! How are you feeling? Why do you think Royal Mail took the top spot for Best Mental Wellbeing Strategy?

We’re delighted! I’m very proud that such a prestigious judging panel have recognised our work on mental health and our commitment to the wellbeing of our people.

## Q: Financial wellbeing was a key pillar of Royal Mail Group’s overall wellbeing strategy. Why do you feel it’s important to tackle this area specifically?

For various reasons, such as; relationship breakdowns, supporting further education, being a carer, or simply lack of financial education - we are aware of the financial difficulties that some employees may experience and recognise the impact that could be having on their health, often their mental health.
It’s important to understand that an individual’s financial wellbeing forms a key part of their overarching health and wellbeing. That’s why the Royal Mail Group programme, Feeling First Class, aims to actively encourage employees to take ownership of their own health and wellbeing and focuses on a range of tools and signposting to support for both mental and physical wellbeing. 

## Q:  We speak to a lot of organisations that are keen to do something to support employee financial wellbeing – but aren’t sure how to go about it. What advice would you give them in terms of getting started? What do you think are the most important first steps?

Start with listening to your employees and stakeholders, look at the feedback from engagement surveys or employee forums or similar. Review data, from your Employee Assistance Programme for example, and understand the demographics of your organisations. Ensure you link in with external organisations like BITC or Neyber and utilise their expertise to shape your financial wellbeing strategy and activity.

## Q: Lots of companies struggle between the conflict of implementing wellbeing strategies simply because it’s the right thing to do to look after their employees, and wanting to measure tangible ROI for their business? Where do you stand? 
At Royal Mail Group we are committed to further improving our employee’s physical and mental health. We aspire to develop a culture where individuals feel supported and informed so that they can bring the best version of themselves to work, every-day. It’s more than duty of care. 

Whilst we review key indicators like; attendance levels, engagement results, feedback from listening forums, and pulse surveys - we believe that by investing in all aspects of wellbeing we will all feel better, perform better, and create a positive working environment that we can all benefit from.

## Q: Business processes often mean waiting for approvals and buy-in from Board level. What’s the key to ensuring they are behind initiatives like yours?
Every organisation will face different challenges, we have been fortunate at Royal Mail with both our existing and previous Chief Executive Officer being advocates for keeping our people safe and well at work. Receiving that buy in from senior leaders in the business is vital to demonstrating to employees that there is a commitment right from the top of the business and that the business cares about its employees.

Senior leadership buy in then makes it easier to access the resources and ‘air time’ required amongst competing business priorities to deliver a successful wellbeing programme which can really make a difference to individuals.


blog-royalmail-ver2

Royal Mail Group on financial wellbeing: 'Receiving that buy-in from senior leaders in the business is vital'

The importance of supporting employees’ mental wellbeing at work has never been greater. How can employers turn awareness into action and create a mentally health company? Here are 10 key tips: 

## Embed mental wellbeing in your culture 

According to research quoted by the World Health Organisation, 49% of workers do not feel they have a workplace culture that enables people to open up about mental wellbeing. But that doesn’t mean mental health challenges don’t exist.  

For example, recent research from the Law Society found that 93% of junior lawyers said they felt stressed in the role in the month before the survey. And while benefits such as private medical insurance or employee assistance programmes can help, building a company culture that makes supporting mental wellbeing part of everyday life requires business-wide commitment and often a change of mindset within a business. 

## Share experiences and build a community

From board members speaking publicly about their personal experiences, through to online forums where staff can swap tips on coping strategies, sharing experiences can be a powerful means of support. 

For example, António Horta-Osório, former CEO of Lloyds Banking Group has spoken in the national press about his own experiences with mental ill-health and has been a personal advocate of creating a culture of openness across the banking group. 

## Help employees to look after their own mental wellbeing

Incorporating mental wellbeing into workplace learning and development programmes is just one way of helping all employees become more aware of the importance of looking after their own mental health. There are also many apps and other digital tools which can help employees as part of a wider strategy to support their own wellbeing. 

## Be accountable

According to Hidden Talent 2, recent research from the PLSA and the High Pay Centre, only 4% of FTSE 100 companies report on employees’ mental wellbeing in their annual reports.  But this is an important factor in demonstrating that employees are being treated well – which in turn can lead to better productivity and offers evidence of a well-run company. 

## Link mental health with physical and financial wellbeing

Lack of sleep, poor nutrition, insufficient exercise, and other factors such as alcohol abuse can all affect employees’ mental wellbeing. Similarly, financial worries, such as debt, are a major factor in poor mental health. A joined-up wellbeing strategy that ties all these elements together will deliver the greatest benefit. 

## Plan in recovery time

Many jobs occasionally require intense periods of challenging or long-hours work. But continually requiring employees to work excessive hours or under pressure will affect their wellbeing over time. Make sure that there is support to help employees through periods of intense work, that it has a clear end-point – and that they get proper recovery time afterwards. 

## Look outside the workplace

Mental wellbeing has had a much higher public profile in recent years and employers can take inspiration from many sources including government initiatives, such as Thriving at Work, the government-sponsored action plan for mental health at work and charities like Heads Together that to support mental wellbeing more generally. 

External validation such as signing the [Time to Change Pledge](https://www.time-to-change.org.uk/get-involved/get-your-workplace-involved/employer-pledge) can also help to show that employers are really committed to staff wellbeing. 

## Know your workforce and the mental health challenges they face 

Knowing more about what is affecting different sections of the workforce is an important precursor to being able to help them.  Carrying out a ‘wellbeing audit’, combining anonymous questionnaire data with face-to-face feedback from staff is a crucial first step to understanding where the problems lie and where to focus effort in helping. 

Bodies such as the City Mental Health Alliance also offer help and support for organisations in specific industry sectors where businesses and employees face similar challenges. 

## Promote good line management practices

According to recent research from the CIPD, heavy workloads and management style are the two biggest drivers of stress at work. Line managers are often under pressure themselves and that, combined with insufficient training and poor management practice, is a toxic mix that will ultimate affect team members’ mental health. Simple rules, such as not emailing staff outside office hours, and training managers in spotting when staff are struggling can make a vital difference. 

## Get everyone involved 

Successful wellbeing strategies need support across all levels. That includes the commitment of the board, staff who can champion mental health in different areas of the business, line managers, mental health first aiders and every single employee. This also applies to making sure that support is on offer to everyone in the organisation – a large salary and a board-level job title offer no protection against mental ill-health. 


iStock-955971676

What does a mentally healthy company look like? Here are 10 essential practices 

## Can you remember how you spent your first pay check? 

Being paid for the first time is one of life’s many milestones and the beginning of a lifelong relationship with earning, saving and spending money. 

Getting that relationship right from the start is the basis for good financial wellbeing, so employers have a unique opportunity to help young employees when they first join the workforce. 

Here are ten ways that employers can help support employees’ financial wellbeing right from the start: 

## Build a budgeting habit

Don’t let employees fall into the trap of thinking that budgeting only matters when money is tight. Good budgeting means that employees have a plan that will help them understand how much money they have day-to-day, to spend within their means, and save (no matter how little). 

That puts an individual in control – and feeling in control of money is at the root of all financial wellbeing. 

## Offer access to appropriate financial products

Younger workers haven’t had the opportunity to build up a credit score, so it can be difficult to get approval for certain types of financial products. 

Offering access to these the workplace means employees are not on their own when it comes to finding appropriate ways of saving and borrowing and that could also mean they have access to better forms of finance, should they need to borrow money. 

## Provide financial education

Most young workers won’t have had any financial education at school. They may have learnt money habits and attitudes from their parents and other family members, or from their peers. 

For some, that will be an inspiring first introduction to financial matters – but others may need to find ways to break away from repetitive patterns of debt and poor financial wellbeing. 

Plus, the future for young employees today will be very different from that of their parents, and they’ll need support to think about their short, medium and long term financial goals in a changed world. 

## Support saving for the long term

Pensions auto-enrolment means that for many workers, their first pay check is also the point at which they start saving for retirement. The longer employees save for, the more likely they are to build up a credible retirement pot by the time they reach their 50s and beyond. 

Even at the current minimum contribution rate of 8%, someone who saves all through their working life could build up a credible ‘pot’ by the time they leave the workforce. But faced with more immediate aspirations and financial demands, it can be tempting for young employees to opt out. 

Make sure they don’t miss out on the ‘free money’ in terms of employer contributions and tax relief. 

## …and help with today’s priorities

First-time workers will also have short and medium term aspirations, such as saving for a house purchase (or even to be able to rent on their own) and paying off student debt. 

There are plenty of ways employers can help – from loans to cover rent deposits, to generic guidance or financial advice that can help employees prioritise and work towards their financial goals. 

## Build a safety net

Having savings to fall back on for unexpected expenses or shortfalls in earnings is a vital part of feeling in control of finances. 

As younger employees become more independent, moving out of the family home and renting or buying independently, the need for a safety net becomes much more important.  Even a small amount of money put away regularly will soon add up.

## Automate savings

Saving money before you have the opportunity to spend it is the best way of building up a safety net and getting into good habits. Salary exchange for pensions is just one way to do that, as is consolidating any debts and automating repayments. 

## Consider offering a LISA

The Lifetime Savings ISA can be a great savings mechanism for younger workers saving for a mortgage, or as an extra form of retirement savings. It’s open to anyone under the age of 40 and could deliver as much as £1,000 a year as a tax-free bonus. 

## Use technology

Used in the right way, technology has huge opportunities to help employees of all ages with their money management. And that will only increase in coming years – services such as Osper and GoHenry mean that many children now manage money digitally from the very start.  

There are excellent tools to support employees in understanding how they spend their money, and also to help them save, for example by rounding up spare change from purchases and putting it into a savings account. 

## Get imaginative

Saving, debt management and good budgeting habits are all crucial to good financial wellbeing. But there may be other ways that employers can help younger workers achieve their personal goals without being held back by money. For example, the coffee giant Starbucks announced recently that it will fund online tuition fees for UK staff who want to study for a degree. 

iStock-948431036 (1)

10 ways to help employees feel financially well right from their first pay check 

Last week, the National Minimum Wage rose from £7.83 an hour to £8.21. That’s great news for many workers in terms of the cash in their pocket, but unfortunately a new tax year also means that bills are rising sharply.

With everything from TV licenses and car insurance to postage stamps and energy bills set to get more expensive, research suggests that the total cost could be as much as £240 more each year per household.

Council tax will go up by more than inflation for most people, gas and electricity prices are predicted to rise by as much as £117 a year and even water and NHS prescriptions are getting more expensive.

That means that pay rises, although welcome, will do little alleviate the budgetary constraints faced by many employees.

The Living Wage foundation has said that the minimum wage needs to increase to £10 an hour in London and £9 an hour across the UK – purely to keep pace with the cost of living.

It doesn’t help that alongside the bill hikes, inflation is pushing up the cost of the weekly shop.

What that means – put simply – is that more workers are struggling to make ends meet. And for many people, the challenges of managing day-to-day finances are seeming ever more insurmountable.

In a world of high inflation, rising bills and meagre pay growth, it is absolutely critical that people have a good understanding of how to budget and stretch their finances to meet the increasing costs of living.

Without good financial skills, the chances of making low levels of pay last through the month are low and the alternative is employees getting into debt to pay for the weekly shop or pay the gas man - hardly an ideal outcome. 

Employers are well placed to help their employees with financial awareness, and there is strong evidence that staff welcome and appreciate this kind of benefit.

By offering financial wellness programmes, you can help your employees manage their finances better – leading to lower stress and better workforce productivity. Your employees will be happier but your business will thrive too.


iStock-982375328

Minimum wage boost won't end work poverty

April is National Stress Awareness Month, an opportunity for employers to focus on causes of stress in the workplace and beyond, understand how it affects their employees, and identify how both businesses and employees can manage it effectively. 

There is no shortage of evidence to show that financial worries can be a major source of stress in employees’ lives. According to Neyber’s DNA of Financial Wellbeing 2018 report 60 per cent of the 10,000 employees it surveyed say their behaviour changes when they are under pressure financially. That behaviour shift can affect everything from workplace performance to relationships at home. 

While money concerns won’t be the only stress triggers that employees are facing, National Stress Awareness Month is a chance to focus on some of the drivers of financial worries for employees and what employers can do to help reduce them. 

__Managing day-to-day costs__ - Borrowing money has become the norm across the UK. Neyber’s research found that 50% of employees are going into debt to make ends meet each month. That has contributed to pushing up the average [unsecured household debt in the UK to £15,400](https://www.tuc.org.uk/news/unsecured-debt-hits-new-peak-%C2%A315400-household-%E2%80%93-new-tuc-analysis)*, an all-time high. Neyber also found that 57% of employees said that their take-home pay changes each month making it difficult to meet regular financial commitments such as bills and loan repayments.  

Employers can help reduce day*-to-day money worries in a variety of ways. Offering discount vouchers on everyday products such as groceries can make a real difference over time, as can providing help with other essentials, such as season ticket loans. Using financial education to encourage employees to shop around for the best deals from utility providers and online subscription services can also help keep costs to a minimum. Financial education can also support employees in building their budgeting skills over time. 

__One-off expenses__ - For employees who are struggling to meet day-to-day financial needs, even a relatively modest additional cost, such as replacing a washing machine or a car repair, can be a source of stress. According to Neyber’s research 32% of employees wouldn’t be able to cover basic living expenses for more than a month should they lose their main source of income. That leaves them very exposed to the risk of falling into debt and the stress that can accompany it.

Support for regular savings through the workplace can help employees build up a financial safety net. Even putting aside a relatively small amount of money each month will in time build into a pot of money that can be used to cover unexpected payments. There is also a role for financial education to help employees explore how to borrow at low cost should they need additional money at short notice. Understanding and monitoring credit scores is also a useful skill; the better an individual’s credit score, the wider the range of options they will have if they do need to borrow. 

__Ongoing debt__ – Neyber’s research found that 10% of people feel their finances are completely out of control, increasing to 16% of employees in the 18-24-year-old age group. A further 18% say that they are only just holding on. For those people, financial stress from ongoing debts is likely be a significant problem. It could be affecting their mental wellbeing and they may need to take time off work to deal with their finances. They may have multiple loans and could even be borrowing to pay off debt elsewhere. 
Helping employees in these situations to consolidate all their loans into a single low-cost monthly payment can enable them to get back control of their money and reduce their outgoings. Coupled with financial education it can also help employees reduce the risk of falling into further debt in the future.  

There can also be a relationship between difficulties with money management and diagnosed mental health issues such as depression and anxiety. Creating a workplace culture where employees feel they are supported if they have money worries or are struggling with poor mental health can help them feel more able to ask for help.  Employee Assistance Programmes can also provide an additional avenue for employees to get help through the workplace.  

Financial stresses, whether day-to-day issues or chronic debt problems, don’t go away overnight. They need a combination of the right financial products, education, self-help and positive workplace culture to make long-lasting change. Start the conversation in National Stress Awareness Month – but be willing to carry it on far beyond the end of April. 




NSAM

National Stress Awareness Month – top causes of financial stress and what employers can do to reduce them 

The goal of the newly created Single Financial Guidance Body (SFGB) will be “a society where everyone makes the most of their money and pensions”, according to chief executive Sir Hector Sants.

In his first public speech since starting his new role, he emphasised the importance of financial wellbeing generally and the critical role that employers must play in achieving this.

Speaking to a business audience at a Neyber supper club he said: “We want to establish the importance of financial wellbeing as a top priority… to a level comparable to that of mental and physical health.

"We need a credible financial capability strategy to equip adults with the necessary skills for life to manage their money and pensions."

![Hector (1)](//images.ctfassets.net/56p2r9yt3nrc/5jNTdHCB79POl1650pvrvQ/e09f80cf7588f45fdffa9ecdbf82fa9e/Hector__1_.jpg)

He said that the newly launched SFGB would be taking a different approach to its predecessors and would look at prevention rather than just remediation and was keen to stress the important role that businesses need to play to make financial wellness a reality.

Hs explained: “Traditionally, money issues are engaged with only when events require it, for example, when individuals sadly lose their jobs, suffer ill health or more positively get married or have children.

“The willingness of individuals to consider their wellbeing needs to move from being transactional and triggered by events to being an everyday consideration.

“The biggest opportunities are undoubtably through working with employers. It is critical you see that one of the central tasks of your organisation should be helping us deliver on that vision and something you have to do to discharge your obligation to society as a whole.”

He highlighted promoting payroll deduction schemes in general as a way of encouraging saving and explaining the value of solutions like the NEST sidecar as just two ways that employers can help staff better manage their money.

He concluded: “Our vision would have employers working with us to encourage their employees to meaningfully engage with money matters, and hopefully through that engagement encourage them to save, budget and borrow in a responsible manner – which in turn gives each individual financial resilience.”

It was a step away from previous government advice, which suggests that individuals need to take sole responsibility for their financial affairs.

Instead, Sants recognised that businesses have a duty of care to help their employees manage their finances and are well placed to achieve this.

This is hardly surprising. Research suggests that consumers are more likely to think about their finances when triggered by events in their lives, ranging from changing jobs, payday and signing a new rent agreement to marriage, divorce and children.

It is therefore natural to think that companies have the right information, access and advice to make a difference in their employees’ financial wellbeing.

The Single Financial Guidance Body is looking at everything from education to access, and Sants was clear that he can see businesses playing a role at each step along the way, whether that’s improving education or promoting inclusion by giving access to financial education.

Sants concluded: “We want organisations to recognise that ideally they should see themselves as a central element to the solution of financial wellbeing – the same way they are when it comes to health and mental health.”


Hector (1)

Employers have a critical role to play in financial wellness, says Sir Hector Sants

Hello Martin, tell us more about the woman that ultimately inspired you to start Neyber. 

As many here at Neyber may already know, my Mum has been a huge inspiration in my life. 

She’s a large part of why Neyber exists today. After the financial crash and all that went with it, it was clear that we needed more of a sense of community when it came to money and her community approach inspired me to start my own business on the same foundations. 
 
My mother was a nurse. As I was growing up, she and her colleagues used to have a jar which they would all put cash in every week. At the end of the month, one of them would take the pot of money. This was very common right across Africa. It's called Sou Sou. Meaning 'pooling of funds’.


__Tell us about the woman that has helped you the most in your career and why__

I came from a background in technology and knew nothing about finance. Monica was one of the first people I met at Goldman Sachs and guided me through my first project, looking at European banks during the financial crisis. 

When I then decided to start Neyber, Monica was the natural choice to join me as Co-founder. I knew she’d be a great driving force and knew she shared the same mission as I did for financial inclusion. I think we can all agree on the reach of her resolve and hard work here at Neyber. 

__Why do you think it’s important to celebrate International Women’s Day?__

Going from traditional banking roles to starting my own business, it’s clear to see that things have moved in right direction but we’re definitely not there yet, and until we are, it serves as a reminder that there’s still work to be done. 

__Is there enough being done to promote women in the workplace and within fintech?__

There are definitely some great initiatives around, but there’s more that needs to be done from the top down. We work with the 30% Club who run a number of very specific and targeted initiatives that look to encourage women at all levels, from “schoolroom to boardroom” which is a great start in moving the dial on gender equality in the workplace. 

We will hopefully start to see the effectives of these initiatives as we all work harder to encourage women and see the positive effect that having more women higher up will ultimately have.  

__Why do you think it’s important to teach the next generation about gender equality?__

Hopefully the lessons we teach the generation now will, in time, mean wider societal change in the future. Essentially, the earlier we start the better. I can already see, through some of the younger generations in the company, what the future could be like if we put the time into encouraging them now. 

All our articles