The long-term outlook for financial wellbeing and how employers can create a valued strategy
Now, more than ever before, it’s important for employers to consider a financial wellbeing strategy that can aid all employees.
For many employers, offering pay rises or bonuses might not be possible this year. But financial wellbeing should go beyond a salary, there are many initiatives and schemes an employer can provide to help their staff.
Support all employees
When you’re looking to create a financial wellbeing strategy that is truly valuable for employees it needs to address everyone’s needs, regardless of their age. This will involve offering a variety of options for all employees. For example, those just joining your workforce at the start of their career might be trying to save for big expenses, as well as building up a pension for the future. Whereas parents with children might be looking at ways they can make small savings everyday so that they can treat their kids.
The links to mental and physical health
There are many things that can have an effect on our mental health, including our finances. When we have money troubles it can cause stress and anxiety which can then lead to physical and mental health issues. One way to combat that is making sure your employees have someone they can talk to if they’re struggling. You could look at offering an Employee Assistance Programme (EAP). EAPs give your employees 24/7 access to trained counsellors who can offer advice and support when your employees’ need it most.
Creating a financial wellbeing strategy
There are a few things you should look at when creating your financial wellbeing strategy, some might be more obvious than others.
- Flexible working: home working has become more common in the past year, and it’s expected to continue even when offices reopen with benefits for both employees and employers. But you might not consider that it can have a positive effect on your staff’s financial wellbeing. By cutting out the cost of a commute, your employees can use the money they would have spent on public transport or fuel elsewhere.
- Financial education: whether you can provide this in house, or you need a third-party provider to help, offering financial education can help your employees make better choices and understand all the options available to them.
- Workplace loans: high street lenders may seem like the only option if you’re in a tough spot financially, but if you offer your employees workplace loans, they can be a safer option.
- Salary sacrifice schemes: from cars to tech, offering salary sacrifice schemes can help your employees spread the cost of a purchase over 12–18 months and save money on tax contributions too.
- Discounts and cashback: making savings everyday can help your employees’ salaries stretch further – even a small discount on their weekly shop can really make a difference.
The author is Jonathan Bedford, director at Sodexo Engage.
This article is provided by Sodexo Engage.
In partnership with Pluxee UK
Pluxee UK, is a leading employee benefits and engagement partner that opens up a world of opportunities to help people enjoy more of what really matters in their lives.
