Employee financial stress has intensified in the past year and financial wellbeing solutions are becoming more crucial than ever in 2021. The Trade Union Congress (TUC) findings state that more than a third of workers said their household had suffered a reduction in disposable income since the pandemic began. This rises to 50% of employees with annual earnings below £15k, while just 29% of workers earning more than £50k have been impacted*
These findings indicate that there is a strong business case for supporting employee financial health
How is financial wellbeing defined?
- Employees having the ability to confidently manage their finances
- Employees being able to absorb an unexpected financial shock
- Employees being on track to meet their financial goals
6 practical steps for employers to support their people
1. Understand their needs
Before any financial wellbeing strategy is put into place or reviewed, it’s essential to understand the needs of your workforce. Each employee will have different needs and it’s important to not make assumptions – financial stress doesn’t just impact those on a low income. Use surveys and focus groups to get a mix of feedback and data but remember to consider that an anonymised online survey may give you more results as staff may not be willing to share or admit their financial worries openly in groups
2. Promote good financial habits and education resources
Employees need a trusted source of guidance. Put in place a financial education programme and communicate the benefits and support of your resources in the most accessible and effective way – don’t just focus on the launch of programme, remember to continually educate, engage and connect your people
Try running a real-life example of budgeting – it’s a simple and fun way to engage staff. For example, if an employee spends £2.50 a day on a takeaway coffee why not encourage them to save this money instead – savings over five days would be £12.50 growing to £50 over a month
3. Introduce an employee benefits platform with employee discounts
Help your people make their income go further with an employee discounts benefit. It is an easy and quick way to provide savings on everyday shopping – from supermarkets and utility bills to special treats, maximising your employees spending power and stretching their monthly budget
4. Consider the benefits of a Home and Electronics salary sacrifice scheme
With Christmas just around the corner, many employees will begin to feel the pressure as they struggle to afford the items they want and need, as well as covering the cost of unexpected expenses. A Home and Electronics employee benefit can help take the stress out of the festive season by making it more affordable for you people by spreading the cost so they can budget effectively
5. Offer a clinical accredited Employee Assistance Programme (EAP)
If your organisation already has an EAP offering, audit it and ensure it’s not just a tick box exercise. Is it led by clinicians, does it include debt advice, self-help workbooks, 24/7, 365 telephone helpline and face to face counselling? Also, ensure you are regularly signposting your people to this essential health and wellbeing tool
The EAP and Secondary Mental Health Services, provided by Vivup has received national recognition and has been awarded the prestigious APPTS mark of approval, the highest level of clinical accreditation in the UK
6. Communicate your Financial Wellbeing tools
This is the most important step – if you don’t promote your financial wellbeing programme, no one will know it exists! Communicate, communicate and communicate some more – if your employee benefits platform has a communications hub utilise it for regular updates and create a buzz. An active and tailored financial wellbeing programme will engage your people and your organisation will soon see productivity and morale increase
To support employers across the UK, we have a range of employee benefits that can help improve financial wellbeing including our Payroll Pay® – Home and Electronics employee benefit. This high-impact benefit helps people spread the cost of needed and wanted purchases, making the unaffordable affordable. It’s quick to implement with easy on-boarding, is HMRC compliant and we provide all the tools you need to support your programme and people
Interested in learning how we can support your business and people? Get in touch and we can show you how our financial wellbeing solutions can make a difference
Book a demo today – enquiries@vivup.co.uk
*Research: financial wellbeing will become more crucial than ever in 2021 (reba.global)
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