I recognise my staff are under financial pressure with rising household bills, but how can I support them without being able to offer inflation-busting pay rises?

Being in control of your finances, rather than having an unlimited supply of cash, is the key to happiness, according to the Feelgood Insight study carried out last year by Aviva and psychologists at London City University.

Lauren Peters, head of financial education at personal finance resource Money in Mind, says employers struggling to grant salary increases should bear this in mind when considering alternative ways to reward employees. “Confusion and exasperation are the root causes of financial anxiety for a lot of people, because many don’t understand how to budget effectively and lack the required skills and confidence to choose suitable financial products.”

She says employers looking to support staff in a meaningful and lasting way should endeavour to improve financial capability within their organisations. “Providing access to accurate and unbiased money guidance and the tools to calculate debt repayment, cash flows and pension savings can help achieve this,” says Peters. She points to the common problems of high personal debt and low pensions – if employees contribute to a pension at all. She attributes this to a lack of financial education in schools, but says employers have an opportunity to remedy the situation.

There are benefits for employers in helping staff manage finances. “Easing employees’ financial anxieties can reduce money-related sickness absence,” says Peters.