4 ways to leverage employee benefits to support financial wellbeing
People behind on their household bills are more than twice as likely to struggle with poor mental health and almost twice as likely to have very poor physical health. But financial problems don’t just impact people’s home life, it can leak into their work life, leading to illness or absence.
Businesses cannot afford to overlook the benefits of building a financially resilient workforce.
1 Invest in education opportunities
For any financial wellbeing initiative to have genuine impact, employees need to understand how it benefits them.
People aren’t ‘just good with money’. They’ve had experiences and access to information that develops their financial literacy – the ability to understand and manage finances, including how to effectively spend, save, borrow, and protect money. Like any other skill, it takes time and practice. By providing learning opportunities that will increase their financial literacy, employees are more likely to engage with their benefits.
Clear, bite-sized sessions or communications are the most effective way to build this knowledge. Consider a range of formats, such as intranet articles, webinars or videos, and drop-in sessions, to cater to different learning styles and schedules.
If you offer free streaming or Audible subscriptions, why not try spotlighting podcasts like The Martin Lewis Podcast, The Vault with Financielle, or The Financial Confessions. Charities such as StepChange, The Money Charity, and Money Ready also have resources you can share with your employees.
As an employer, higher financial literacy benefits you as it will strengthen employees’ problem-solving and strategic planning skills, improve cross-departmental relationships, and empower them to be more involved with conversations that impact the business’ finances too.
2 Encourage employees to explore their pension
There’s no one-size fits all approach to pensions but keeping them visible and transparent is vital.
Pensions are often overlooked, as they’re less immediate than monthly bills or saving for a mortgage. Without that sense of urgency, employees may push any uncertainty they have around pensions to one side or not be aware of how their pension-related actions could affect their retirement age or things like their student loan repayments and maternity pay calculations.
Work with your pensions provider to deliver specific, digestible information that allow employees to assess the best pension route for them and gain a sense of long-term stability. Many providers will arrange for their advisors to meet with employees and create a plan that works for both them and their families or train employees to be Pension Champions to help more employees access the information they need to maximise their pension scheme.
3 Offer technology or furniture salary sacrifice
Like any other area of your people strategy, benefits need to work for people at all stages of life. A recent survey ranked moving home as one of life’s most stressful experiences, surpassing job interviews, dental procedures, and even childbirth.
Offering technology or furniture via salary sacrifice can bring a sigh of relief for employees of all ages – from young professionals setting up their first home, to new parents setting up nurseries, to down-sizing empty nesters.
As the cost is covered by their pretax salary and can be spread across multiple months, employees can settle into their new chapter free from the worries that come with payday loans or credit cards.
4 Make the commute easier with transport benefits
In the UK, the daily cost of commuting into an office is £19.10, whereas the average working from home cost is only £9.41, so providing transport related benefits that reduce the cost of travel and will boost employee retention and satisfaction.
Offering bus and train season passes can make commuting more cost effective and websites such as Liftshare can help set up affordable carpooling systems that align with your business’ sustainability agenda.
Additionally, salary sacrifice car schemes make balancing the cost of driving significantly easier for employees. Employees get access to a car and an all-inclusive package that covers insurance, maintenance and servicing, road tax, and more for a set cost each month.
It’s a financially savvy option as the cost is covered from an employee’s pre-tax salary (meaning they have lower Income Tax and National Insurance contributions), there are no upfront costs or deposits, and all in-life costs are covered through the monthly deductions. Plus, employees can bring down fuel costs by opting for an electric car.
In a nutshell
Investing in financial wellbeing, will benefit the business and employees alike. By improving financial literacy, your employees will be able to apply their knowledge to both their work and homelife decisions and foster a culture of financial transparency and accountability whilst improving cross-departmental relationships.
Providing quality benefits will deliver long-term stability to employees, reducing stress-related absences and employee turnover.
If you’d like to find out more about how we can help balance the cost of driving for your employees, then get in touch.
Supplied by REBA Associate Member, Zenith
The UK’s leading independent leasing, fleet management and vehicle outsourcing business.
