Employees say what help they need. Now bosses must act

According to WTW survey, 44% of employees say discounts and subsidies would most help manage their day-to-day finances during the cost-of-living crisis

Employees say what help they need. Now bosses must listen.jpg 1

As inflation continues to rise and the threat of economic downturn looms, a quarter of employees say they are struggling financially, with four in 10 saying they’re living payday to payday.

Listening to employees’ needs is critical, more so than ever in the current climate. In fact, according to WTW’s latest Global Benefit Attitudes Survey, half of employees said they would leave for a 5% pay increase elsewhere if the benefits package does not meet their needs.

The survey also says:

37% of employees want their employers to prioritise benefits for low wage, compared with only 10% of employers that say it’s a priority
two in five employees say financial apps should be a core part of benefits
42% of employees want savings and investment options where they can save directly from their pay

Communicate what’s already on offer

There is a clear link between financial wellbeing and mental wellbeing, and 81% of employers cited stress, burnout and mental health issues as their main concern for their workforce.

According to the survey, 44% of employees say discounts and subsidies would most help manage their day-to-day finances. So, ensure employees fully understand the value of the benefits available to them, and are well versed in using traditional benefits, such as private medical, cycle to work, health cash plans, employee assistance programmes and voluntary retail discounts, etc.

Financial wellbeing

Wage advance schemes, debt consolidation and loans through the workplace can be useful tools alongside the education for employees.
Will writing, corporate ISAs and mortgage advice and financial coaching can also provide support. Reviewing the financial products available to employees and joining them up in a financial wellbeing strategy can help identify the purpose of the offering and identify any gaps in provision.

Support for working from home

For the 2020/21 and 2021/22 tax years, HMRC made employees working from home due to Covid-19 measures to be eligible for tax relief. If an employee didn’t claim tax relief for these years but worked from home, it can still be claimed.

Childcare support

Employees can get up to £2,000 a year for each of their children through the governments Tax-Free Childcare scheme by setting up an online account for their child.
Some families may benefit from Specified Adult Childcare credits. These are national insurance credits that can be used to increase or even enable entitlement to the state pension.

Attracting and retaining talent

The economic challenges many people are facing are unlikely to disappear soon, so reviewing what’s most important and planning how to improve the employee experience will help progress attraction and retention.

Organisations that deliver an excellent employee experience deliver greater financial performance, which is probably why 93% of organisations are looking to improve theirs over the next few years.

47% of organisations are planning or considering the use of data to measure and identify risk groups and vulnerable employees, while 16% have already taken action.
49% of organisations are planning or considering connecting employee health with their financial security, while 21% have already taken action.
Pay and bonus, job security and flexible work arrangements are the top three factors for attracting talent.
Job security, pay and bonus and relationships with co-workers are the top three factors for retaining talent.