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18 Jul 2019

Six ways to help your employees feel in control when it comes to their money

It’s fair to say that no-one likes the feeling of being strapped for cash. Having to turn down an evening out with friends or not being able to see the latest film at the cinema because ‘money’s tight’, is something we’ve all experienced at some point in our lives. But for many, this experience is becoming something of a depressing norm.

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This isn’t helped by wages that have struggled to keep up with inflation. Although those on the lowest wages have seen an improvement in the minimum wage, the fact that bills have also increased wipes out any benefit people could be enjoying.

Working to live

Although the cost of living is an inescapable aspect of life, it shouldn’t be a dominating factor in people’s lives. But when someone’s wages are only enough for them to ‘get by’ month-to-month, it’s only natural for them to want to either ask for a pay rise or leave for another role which pays more.

This puts employers in a somewhat unenviable position. On the one hand, dishing out pay rises to all and sundry – which would no doubt would be popular - simply isn’t sustainable or good business sense. But on the other hand, keeping employees more financially secure so they can enjoy themselves helps retain the best talent and attract the best employees the workforce has to offer. There obviously needs to be a balance.

Luckily, there are several things employers can do that’ll help employees move on from ‘just getting by’ to feeling more financially secure and in control of their money – all without hitting the ‘more money’ button.

1. Remove the stigma of debt

Consider offering a confidential safe space in which employees can discuss any financial problems they may be experiencing, and help them with access to good, free and impartial financial advice as part of a wider employee wellbeing strategy. There are plenty of professional financial bodies out there that can do this – your employees might just need pointing in the right direction.

2. Help with money management resources

Offering budgeting tools that link to employees’ accounts can help them identify where they may be spending too much or how they can use their money more effectively. By doing this, you’re empowering your workforce to take control of their finances and make better financial decisions.

3. Don’t add to their financial pressures

Smaller, independent businesses are more likely to experience cashflow problems than their multi-national compatriots, and may not have such a robust approach to payroll. However, you should always ensure wages are consistently paid on time, every time.

Also, aim to reimburse staff expenses as quickly as possible, so workers don’t incur credit card or overdraft interest charges. The last thing an employer should do is cause their employees financial hardship.

4. Consider flexible working

Giving employees the option to work from home can help them save a great deal of money each month and help them do more with their wages. If that’s not possible, condensed hours over four days a week (so, working four 10-hour days instead of five 8-hour days) might also be an effective way to help your employees feel more financially comfortable.

5. Help them to save for the future

Employers can help their staff put a little money aside each month with dedicated savings accounts linked to their wages. This means employees don’t have to worry about putting money aside for a rainy day as it can be done for them automatically each month.

This is obviously a big step for any business; but one that can reap rewards when it comes to staff financial wellbeing.

6. Offer help with day-to-day expenses

Lastly, if working from home or condensed hours aren’t an option, perhaps look at ways you could assist with commuting expenses; with benefits packages that can help with the cost of parking, public transport, cycling to work or even new cars. This is not only a great way to help employees stretch their annual salaries further each month, but also shows you care about their wellbeing.

This article is provided by Sodexo.

In partnership with Pluxee UK

Pluxee UK, is a leading employee benefits and engagement partner that opens up a world of opportunities to help people enjoy more of what really matters in their lives.

Contact us today