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17 financial wellbeing benefits that will help you retain employees

 

During COVID-19, mental health became a key conversation with many organisations taking action to protect employees. However, wellbeing comprises several other elements such as social, physical, community, and career wellbeing. Financial wellbeing also sits under this umbrella, which is about having the confidence to manage your finances effectively.

COVID-19 triggered financial difficulty for many families as businesses closed their doors indefinitely. Approximately 10.1 million people in the UK are showing signs of financial hardship, and 2.4 million have been experiencing debt problems since the COVID-19 pandemic began. The UK is in the midst of a ‘cost of living crisis’, where inflation rates are outstripping wage increases. Research by Kantar found that food prices rose by 3.8 percent in the first month of 2022, and energy bills are set to soar by more than 50 percent in April 2022. Microchip shortages have also led to a hike in prices. Petrol, second-hand cars, and even shipping costs have spiralled. The Bank of England expects inflation to reach more than seven percent by spring.

It's not all doom and gloom, government support packages have provided a lifeline, and many businesses have diversified their offering. Passion projects and even multiple income streams have also grown in popularity as people bolster their earnings. Today some aspects of the economy have already reached pre-pandemic levels. The Bank of England expects inflation to drop back down in the summer. However, it's not only our ability to manage our money day to day, but also how we can prepare for future eventualities that will impact our finances.

Research estimates that money worries cost the UK economy £120bn and 17.5 million lost hours of work (Neyber). We all know that lack of sleep, anxiety, and tiredness can affect our performance at work. However, the Chartered Institute of Professional Development research found that only half of employers have an effective financial wellbeing strategy. Therefore, employers can play a crucial role in supporting their employees. A pre-pandemic survey by the Financial Conduct Authority revealed that more than half of employees (57%) want financial advice in the workplace. Over one-third (33%) would pay for in-house financial advisory services provided by their employer. A recent survey by Taxback.com found that 75 percent of people think employers should play a role in employees' financial wellbeing.

Did you know that 20 percent of employee turnover is attributable to financial stress? Financial wellbeing benefits can also be used as a point of differentiation for those looking to ‘ win the war for talent’. We’re not only referring to living wages and workplace pensions here; we’re talking about building a culture that educates and empowers employees to make better financial decisions. Support will be even more welcome during key milestones such as buying a house, getting married or becoming a parent.

Employers can signpost and partner with organisations that provide advice around key topics such as;

  • Managing debt

  • Savings and investments

  • Tax

  • Budgeting

  • Loans

  • Property and mortgages

  • Retirement planning

Organisations can also help an employee’s bank balance by considering options such as the following;

  1. Income protection

  2. Company equity

  3. Critical illness cover

  4. Private healthcare

  5. Workplace ISA’s

  6. Subsidised childcare

  7. Insurance such as dental

  8. Stock purchase plans

  9. Employee loans

  10. Employee discount schemes

  11. Salary sacrifice

  12. Merit based pay schemes

  13. Financial assitance for egg freezing

  14. Tuition fees

  15. Referral schemes

  16. Car maintenance schemes

  17. Christmas savings clubs

According to research, 31 percent of employers say staff do not understand benefits. Therefore, employee benefits should not only exist in a welcome letter. Regular communications, an online portal or app are great ways to showcase your benefits. You should also regularly survey employees on their benefits and what they would like featured. 

Research from the Yorkshire Building Society found that three in ten (30%) of workers in the UK could only manage for up to a month financially if they had to rely on their savings to cover their outgoings. The Society also found that a quarter (26%) of workers said they had less than £500 in savings. It is not just those on a lower income that worry about money. The Chartered Institute of Personnel and Development  found that one in four employees said to financial worries impact their productivity at work.

Talking about money may be taboo, but employers can humanise the topic. Look at the focus that is now given to mental health; employers undoubtedly helped shift stigmas and now recognise phrases such as burnout. Financial wellbeing is set to climb the priority ladder in 2022; the question is, what will your organisation do to help your people prosper, and compete with other employers?

Worried about your finances, or want to make some changes? Here some useful links:

Inspiration for employers

Crimson is an IT consultancy, an IT solutions provider, an IT recruitment agency, and a Microsoft Gold Partner operating across the UK.
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