Four key benefits for inclusive financial wellbeing next year and beyond
Employee financial wellbeing looks set to continue being a hot topic in 2023, with the ongoing cost-of-living crisis. Many UK businesses have taken steps to support their employees financially, either through one-off bonuses or pay rises.
While these measures will be appreciated, they often exclude employees who have not passed their probationary period. To be inclusive, a financial benefit must be accessible to all employees without caveats or limitations.
According to a report, seven in 10 employees would welcome financial education and budgeting support from their employers. The demand for financial education in the workplace isn’t just a response to the cost-of-living crisis. Some workers will remember the UK’s 2009 recession, but for millennials a financial crisis is new territory and financial management tools and education are essential.
By investing in money management apps, you’ll be giving employees access to tools to track their earnings as they work, build up savings directly from their pay, chat with qualified financial coaches and monitor their financial health score.
2. Debt consolidation
Salary sacrifice schemes can help employees with multiple sources of debt consolidate their loans by borrowing from their employers. While debt consolidation involves another loan, the interest rate should be lower. With the repayment coming straight from their monthly pay, many employees will find it easier to cope.
Some employees may struggle to find an affordable debt consolidation solution from high-street lenders, so this is another way to offer inclusive financial support.
3. Stretching wages further
One-off bonuses are appreciated, but giving employees a chance to make long-term savings with an employee discount platform will make a significant impact. With discounted vouchers available from their favourite supermarket chains, it’s an inclusive financial wellbeing benefit that all employees can access and use in a meaningful way.
Likewise, a prepaid employee cashback card is one of the most versatile and inclusive financial wellbeing benefits you can gift your employees. Load it up each month, use it to deliver rewards and bonuses, or leave your employees to top it up themselves. However you choose to use it within your business, your employees will earn up to 15% cashback at participating retailers, stretching their salary further.
4. Salary sacrifice
As well as debt consolidation, salary sacrifice schemes can fund a range of goods from top technology to cycles and even electric cars. By spreading the payments out, salary sacrifice schemes are an inclusive way of helping employees purchase lifestyle-improving products.
According to government figures, more than 40,000 UK employers offer a cycle-to-work scheme, and there’s a good reason for their popularity. When an employee takes up a salary sacrifice scheme, the business saves on National Insurance contributions. Furthermore, one of the ways organisations gain approval to implement new benefits is by using the savings made from salary sacrifice uptake.
Your inclusive 2023 financial wellbeing strategy
This is a shopping list of inclusive financial wellbeing benefits that will boost employee wellbeing, engagement, retention and performance in 2023 and beyond. However, to be truly inclusive, businesses should take the time to find out what matters most to their employees.
For benefits to be effective and meaningful, they must align with employees’ needs. The best way to determine what will be well received is by bringing the people you’re trying to support into the conversation from day one.
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