With a move towards automation and AI in the workplace to reduce staff costs, standing out (as a business and an employee) means having the skills needed to thrive in the future.
Financial literacy and commercial acumen are often overlooked skills that can positively impact your employees’ wellbeing and productivity while increasing your business’s bottom line.
Having a financially literate and commercially savvy workforce means your employees have the knowledge and skills they need to make important financial decisions and understand how your business makes money and generates value for its customers.
Financial wellbeing and mental health
Having a financially well workforce doesn’t just impact your business’s bottom line, it’s a key part of supporting your people. Businesses that aren’t prioritising financial wellbeing, aren’t prioritising their employees’ mental health. A recent report released by the ed-tech platform Wealthbrite surveyed 500 lawyers across the UK and found financial pressures were leading to depression, anxiety, sleepless nights, and a lack of motivation.
- 72% of all lawyers report at least one sign of poor mental health as a result of their finances that could affect their ability to function at work.
- 82% of all junior lawyers worry about money almost every day.
- 60% of lawyers feel pressure to spend beyond their means.
It’s not just lawyers who are struggling, money and mental health issues are widespread across the UK. The Money and Mental Health Policy Institute’s research shows that in England alone over 1.5 million people are experiencing both problem debt and mental health problems.
Financial literacy and social mobility
Social mobility in the workplace is now firmly on the agenda for UK businesses that want to monitor diversity. However, giving people with diverse lived experiences access to work opportunities isn’t enough, businesses must give them the tools they need for success.
The definition of social mobility includes one’s lived experience with money, so levelling the playing field means helping employees manage their finances, teaching them how to budget, make sure they have enough to pay bills and not overspend.
Some of the highest earners in the UK still struggle with basic money management, The Financial Wellbeing in Law Review found:
- 72% of junior lawyers say they don’t know how to budget.
- 48% of lawyers at all levels turn to credit cards because they’ve run out of money at the end of the month.
- 36% of lawyers could not afford an unexpected expense of £850 without relying on borrowing or credit.
This isn’t confined to the legal sector, the Money and Pensions Service found that 24 million UK adults don’t feel confident managing their money.
Businesses that want to become industry-leading employers can stand out from the competition by helping their workforce become financially resilient. It doesn’t just demonstrate a commitment to employees, it drives social change.
As more people in the UK gain the skills they need to manage their finances, the overall financial health of our society improves. Leading to greater economic stability, reduced poverty and increased social mobility.
Commercial acumen and business success
A commercially savvy workforce doesn’t just understand your company’s products or services, they have a firm grasp of your business strategy, industry trends, financial performance, and competitor actions. This means they can contribute to your business’s success by identifying opportunities for growth, effectively managing budgets, and finding ways to cut expenses.
Transitioning from education to the workplace can be difficult for early-careers talent. While they may have theoretical knowledge, they often lack the real-world experience needed to fully understand their roles. Research from City & Guilds found that only 23% of young people surveyed felt that they had the skills needed to progress in their careers.
This skills gap can affect your employees’ ability to connect with your business, understand their role and relate to your customers. It can also lead to managers picking up the slack, leaving half your team overworked and stressed out, while the other half feels inadequate and unable for their role.
Boosting financial wellbeing and commercial acumen in the workplace
Businesses that want to equip their employees with skills for the future need to change their approach to financial training. The Financial Conduct Authority (FCA) has recently recommended that employers and pension providers rethink their communication strategies. Employees are experiencing information fatigue, becoming disengaged from the financial resources they need to thrive.
Although there’s an awareness among UK businesses of the importance of financial wellbeing, there’s a disconnect between available support and employee engagement. The Financial Wellbeing in Law Review found:
- 73% of lawyers responded with ‘no’ or ‘don’t know’ when asked if their workplace currently provides adequate financial wellbeing support.
- Of those with access to resources, only 30% actively use what’s on offer.
Training not hitting the mark is not just a problem in the UK, Anoxify’s 2018 State of Workplace Training Study, reports that of the US workforce that receives training 43% found it ineffective.
Businesses that want to change the status quo, need to provide training that connects their employees with the bigger picture. This means understanding their specific role and how it interacts with other departments and contributes to overall business success.
Practical strategies for implementing training programmes that cut through include:
- Interactive learning experiences – targeted workshops and learning pathways that use real-world case studies and business simulations to allow your employees to engage with business challenges in a safe environment.
- Mentorship & on-the-job learning – face-to-face interactions and hands-on learning experiences, including workshops, reverse mentoring, and group discussions to create a more supportive learning environment.
- Engaging digital formats – learning experiences that don’t feel like a corporate memo, including interactive webinars, gamified modules, and apps to keep your employees engaged and prevent information from going over their heads.
To cut through the information overload, businesses must improve training delivery methods. This means moving away from outdated modes of communication, like emails, and encouraging active participation. Maximising the use of technology can increase the uptake of the training that’s on offer, and digital tools like AI-powered learning platforms can make financial and commercial education more enjoyable, giving your workforce the skills they need to thrive in the future.
When businesses prioritise financial literacy and commercial acumen, they aren’t just investing in their people, they’re building resilient and future-proof organisations.
Carla Hoppe is a leading financial education expert. After 15 years in the corporate and financial sectors, she stepped away from a partner-tracked career at EY to found Wealthbrite, an award-winning ed-tech platform that builds high-performing teams with practical financial training. Carla is also an associate faculty member at the Centre for Personal Financial Wellbeing at Aston University.
