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How Can Bosses Support Employees' Financial Wellbeing?

How Can Bosses Support Employees' Financial Wellbeing?
03 September 2021
 

21 per cent of employees say support from their employer for their financial wellbeing falls short of their expectations.

Whilst employees are impressed by the dedication managers are showing to their wellbeing, research from Edenred, the employee incentive company, suggests that support tends to focus on physical and mental aspects of wellbeing, and less so on financial wellbeing.

81 per cent of employees feel their employers have done a good job of looking after their mental wellbeing. But employers must now ensure they don’t neglect financial wellbeing.

Countless studies show the detrimental impact financial worries have on mental health.  This means that any wellbeing strategy must include a specific focus on helping staff to manage finances and debt. 

 

Financial Wellbeing Policy

 

The CIPD recommends that a financial wellbeing policy should form an integral part of every employer’s wellbeing strategy.

Any employer can begin to build a financial wellbeing policy with these three simple steps:

  1. Let your workforce know that they can get free, confidential and independent money and debt advice from the government’s Money and Pensions Service
  2. Make sure your workforce is fully aware of all the benefits you currently offer and how to make the most of them.
  3. Begin a dialogue with employees and line managers about the financial challenges and opportunities faced by them and the business. This will show your concern and help to break down the stigma associated with money problems.

 

The Real Living Wage

 

Recently celebrating its twentieth birthday, over £1.5 billion in increased wages has been put back into the pockets of over 260,000 low-paid workers over the past 20 years, thanks to the Living Wage Foundation.

Almost three-quarters of employers paying the real Living Wage said that accrediting with the Living Wage Foundation had improved their reputation as an employer. 

The real Living Wage is the UK’s only independently calculated wage rate based on meeting people’s everyday needs, it is currently £9.50 an hour outside of London and £10.85 within the capital. 

A survey from Cardiff Business School showed that 59 per cent of 1,530 Living Wage Employers found that it improved retention of employees receiving the real living wage. 60 per cent said it improved recruitment and 30 per cent said it reduced sickness absence. 

 

Poor Wellbeing a Threat to Performance

 

57 per cent of employers think poor wellbeing is the biggest threat to performance.

As the costs of everyday household items, as well as bigger ticket items, continues to rise, employee wellbeing can be supported by giving staff access to shopping discounts at big-brand online and high street retailers through an employee benefits framework. It offers hundreds of ways to save on spending, whether it’s on the daily essentials, the latest tech or making travel plans.

Employees will be able to enjoy a "discount on a discount" when they make a purchase.  For example, when a retailer runs a promotion for an event like Black Friday, Cyber Monday or Christmas, employees enjoy the discount advertised by the retailer and an additional reduction through the discount scheme.

Businesses can also offer employees a tech salary sacrifice scheme.  This means staff can buy new technology, mobile phones, gaming devices or household appliances and spread the cost over the year ahead with small deductions taken from their monthly pay packet.

Picture: a photograph of a person sitting at their desk with their hands on their face

Article written by Ella Tansley | Published 03 September 2021

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