14 Jan 2019

Why the New Year is the perfect time to encourage your staff to limber up for financial fitness

With the excesses of Christmas now firmly behind them many employees will be busy counting the pounds of Christmas – both in terms of what they consumed and what they spent. Couple that with a return to work, the dreaded January blues and already broken New Year’s resolutions and many staff are already in need of a New Year pick-me-up.

2594-1547292739_WhythenewyearisaperfecttimetoencouragefinancialfitnessMAIN.jpg Whilst some may have hit the gym as part of their New Year’s resolutions now is the time to encourage a financial fitness overhaul too. Here are four top tips to help your staff get their finances in better shape for 2019:

1. Encourage staff to review and consolidate debt

As the December credit card bills and bank statements start coming through it’s little surprise that staff can be left a little shocked at the true cost of Christmas. It’s easy to get carried away both pre-Christmas and in the Sales. Rather than sticking their head in the sand if they have overspent it’s better to encourage them to review their debt and consolidate where they can, through loans, moving to interest-free credit cards or simply prioritising the most expensive debt first.

2. Help them plan for the future

Helping staff to plan their money longer term will give them much needed motivation. As well as planning pensions and other longer-term investments providing assistance with mortgage decisions through options such as in-house mortgage advice sessions could help them achieve things they thought out of their reach. For those looking for their first house understanding what they can afford and finding the right mortgage deal is vital. Other employees may be looking to release equity by remortgaging – perhaps to fund a child’s wedding or higher education or to invest in a buy-to-let property to help fund retirement.

3. Enable staff to make the most of discount vouchers

After the expense of Christmas January is also the time to review how your staff can make savings on their daily expenditure – on everything from gym memberships to shopping vouchers. Many employers offer such schemes and reminding your staff of their value can really help to reduce financial stress. Discount vouchers can help with everyday purchases whilst making use of company schemes such as cycle to work schemes or childcare vouchers can help staff reduce their everyday outgoings.

4. Encourage them to look for savings large and small

Staff should also look at how to reduce their monthly outgoings too. Encouraging them to shop around for new deals on items such as energy or broadband deals when fixed terms come to an end can help save pounds. Budgets can easily be stretched when fixed rate deals come to an end and nowhere is this more apparent than in mortgages. Employees can end up paying hundreds of pounds extra a month simply by failing to remortgage since most lender’s SVRs are considerably higher than the Bank of England base rate. They can also increase or decrease at any time – putting employees at risk of further financial strain. A YouGov survey released in December suggested that more than a third (38 per cent) of borrowers have ended up on their mortgage lenders SVR at some point.

These are four simple steps but encouraging your staff to embrace options like these can help not only to boost their financial fitness but also boost morale, motivation and productivity and banish the January blues for good.

This article was provided by Charles Cameron & Associates.