Employee engagement is more than just a buzzword – it's a critical factor that can make or break the success of your business. It’s the component that can result in employees that are more productive, more innovative, and more likely to stay with your company for the long haul. But the truth is that employee engagement is a complex and multifaceted issue, and it requires a thoughtful and strategic approach to address. In this article, we'll delve into the role financial wellbeing plays in employee engagement, and provide you with practical strategies for boosting engagement levels in your workplace.Increases in financial stressMoney and mental health are closely linked – and it is a critical component of achieving employee engagement. Many employers are starting to recognize the importance of addressing mental wellbeing, but as the effects of rising inflation take hold, financial stress is an increasing area of concern. From rising fuel and food expenses, it's becoming increasingly difficult for many people to make ends meet – even those in well-paid positions are feeling the strain. In a YouGov x YuLife survey, 55% of those surveyed said that they were worried about the their finances – with that increasing to 63% among women.And, unfortunately, that is impacting employee engagement at work, with 32% of workers believing that stress around financial wellbeing is negatively impacting their mental and physical health. And those aged 28-35 are most affected, with 2 in 5 feeling the mental and physical strain of financial stress.But it isn’t just young people – inflation and rising costs are a significant concern for those nearing retirement. 72% of those aged 55+ said the rising cost of living was their biggest concern, and 73% aged 45-54 said they were most concerned about inflation. Tactics for easing financial stressThe YouGov x YuLife survey suggests the solution for financial stress isn’t a simple one. Research found that just 53% of US working adults would be comfortable telling an employer they feel financial stress. 1. Provide holistic mental health support Paul Cauldwell, experienced Wellbeing Manager, believes any help you can provide needs to be centered around people's mental wellbeing. "So if an employee has money worries, can you help them not just with the financial issue, but also the emotional impact? Ask yourself: do your policies and processes line up to support people? Do they allow them, for instance, to take half an hour out for that counseling session? So it's really about looking after the whole person."An Employee Assistance Program (EAP) can provide an anonymous resource for employees to self-serve support, but to ensure it’s understood and utilized by employee education is needed to highlight how EAPs can help as a preventative measure – not just for a crisis point. The best EAP programs will include measures such as mindfulness training, alongside professional counseling.2. Insurance and financial healthFinancial stress isn’t always the result of everyday money worries. Financial resilience is a key component in achieving financial wellbeing. And insurance has a big role to play. In the YuLife x YouGov survey, 28% would choose Employee-sponsored Insurance, otherwise known as Group Insurance – Income Protection or Critical Illness Insurance – as the favored policy a workplace could offer to help enhance their sense of financial wellbeing. 39% of 18-24 year olds said that Income Protection would enhance their sense of financial wellbeing. These policies can provide a financial safety net that gives long-term financial protection for moments when it’s needed most. Education for better money management As Ian Russel, Moneyhub's Head of Performance Marketing explains, there are a number of tools businesses can use to help employees manage their money, and reduce financial stress. "Employers don't have unlimited funds to provide inflation-busting wage increases," he says. "So employers need to think creatively about how they can help employees ensure their cash goes further, and give them resources and access to important information.”Financial coaching is one benefit worth considering to reduce financial stress and boost engagement. Professional financial advisor support that can help them to budget plan, and face any concerns can make a huge impact.Financial management is available through the best of EAPs and can provide the education and daily support needed. But in addition, you could offer a financial planning app that allows employees to track their spending, create a budget, and monitor their savings goals. By providing these resources, you are empowering your employees to take control of their finances, which can lead to reduced stress and increased engagement at work.But even on a more basic level, knowledge is power with finances, and ensuring your team understands what benefits are available through workshops and seminars – how their pension works, what group insurance is available – will all support them in achieving financial wellbeing. By offering financial wellness support, you are showing your employees that you care about their well-being and want to support them in their financial goals. This can help increase employee loyalty and engagement.Financial supportFinancial support may seem like the first choice – but, realistically, bonuses, incentives, and promotions, aren’t always an option. However, we know that when employees feel recognized and appreciated, they are more likely to be engaged and motivated to continue producing high-quality work. The answer?Reward schemes that offer financial rewards can provide day-to-day support that makes a difference. As inflation hits local grocery stores, vouchers for food retailers like Target can make weekly shops go further, for example. 1. Make help easy to accessThe likelihood is, you have employee benefits that can help your people ease financial stress – but the survey found that one-quarter of workers (25%) feel their workplace does not clearly explain the support it offers.Find a solution, such as an employee benefits app, that centralizes your employee benefits and provides easy access to drive up-to five times the engagement. To find out how the cost of living is impacting other people leaders, download our eBook here.