22 Feb 2018

What are the benefits of helping employees manage their finances?

According to the Neyber report The DNA of Financial Wellbeing, 8% of the UK’s workers were affected by money worries in 2017. Many employees today are having trouble managing their money, as well as being unable to access financial products, with 22% of employees admitting to being refused credit.

This is undoubtedly taking a toll on employees, with work performance, engagement and motivation likely to take a spiral downwards. This can cost your business valuable time and money as well as affecting employees’ health and wellbeing. However, the solution to this may not just be as simple as spending less money, as there are many factors that come into play.

According to the report, 39% of employees feel their employers don’t communicate about financial support. This, as well as the benefits to employees, is why it’s so important for employers to take the opportunity to implement a finance programme for their employees.

What are the benefits of helping your employees manage their finances?

By implementing a fairer finance programme, you can work to support employees with their financial confidence. This can help your workforce to better manage their money and make their pay go further.
Many programmes are of no cost and no risk to employers to set up. The process is likely to be integrated with payroll systems, meaning there are no charges for the employer to set up the scheme.
By giving employees the tools they need to get a clear picture of their financial situation, you can reduce your employees’ stress levels and help them get back on track.
Fairer finance means fair rates for all. Loan repayments using salary deductions means reduced risk to the employer and better rates for staff.
You can give your employees expert support in managing their money through educational support and material that provides the tools needed to improve financial confidence.

How do finance programmes work?

Staff can have access to affordable loan rates, allowing them to consolidate other high interest loans that are charged by payday lenders and credit card companies. This can help to reduce employees’ finance outgoings and leave them with more disposable income to do more of what they love.

As well as this, the programmes give your employees the resources and tools they need to help them feel more confident when it comes to their finances. Educational material is likely to be available through an online portal, meaning employees can be supported 24/7 whenever they need it.

Providing a range of benefits to your employees will really help staff in their home lives, meaning it’s an investment in your workforce that you simply can’t overlook.

This article was provided by Busy Bees Benefits.