How a health cash plan can support financial wellbeing
The cost-of-living crisis has been making headlines over the past few years thanks to the rise of inflation, high taxes, and soaring household bills.
According to the Office of National Statistics, 9 in 10 adults agree that this is the most important issue currently affecting the UK, with concerns centred on keeping up with mortgage and rent payments, struggling to put food on the table and being unable to turn the heating on.
While these financial worries are understandably impacting those on low incomes, research by Which? reveals it’s taking a significant toll on other groups too. People on the brink of hardship categorised as the ‘anxious and at risk’ group, are aged between 18-34, earn between £20k-£40k per year, have children, work, and rent their home.
The report says: “They and other members of their household aren’t eating healthily enough, have increased anxiety and are getting more distant from their friends.” It goes without saying, this can put enormous pressure on people and their mental wellbeing and might lead to high levels of stress and anxiety.
While wellbeing usually falls into three areas – physical, mental and financial – they are interrelated and each one affects the other. However, issues with mental wellbeing tend to be the result when suffering with financial wellbeing problems.
How does this affect employers?
It is unrealistic in today’s workplace to expect employees to leave their problems at home – mental health is not something that can be switched on and off. And with people now working from home, at least for a part of their week, this is not an option.
Ignoring a situation such as the cost-of-living crisis and not taking measures to provide workers with the tools they need to improve their financial wellbeing can not only lead to employees underperforming or taking sick leave, but can also deter potential new talent from joining a business.
A survey by consulting firm Mercer shows that the needs of the workforce are changing. Before the Covid-19 pandemic, the employer-employee contract was based on engagement where psychological needs such as recognition, camaraderie and rewards were valued the most. This has shifted and we are entering a lifestyle contract where importance is focused on wellbeing and healthier experiences.
Mercer says that one of the top priorities employers should be focused on this year is the financial health of its workers. It reveals that both lower and high-income employees are stressed as a result of inflation and market volatility.
In response, workers are changing their lifestyle to reduce their spending and savings as well as taking on extra work. Given the scale of these concerns, businesses are advised to prioritise living wages for employees, support retirement readiness and holistic financial wellbeing.
What businesses can do
One of the first steps a business can take is to adopt a health cash plan as part of a wider support programme. Such plans enable employees to claim cashback for everyday health care expenses, including dental treatment, optical services and physiotherapy.
Some cash plan providers offer 24-hour access to a GP helpline, mental and financial support services and fitness discounts. Providing a health cash plan will help keep the workforce healthy, help with day-to-day spending on healthcare bills and ensure employees get the treatment they need quicker.
The demand for and use of cash plans has been growing since the pandemic. When they were first introduced, cash plans were sold directly to individuals, but just over a decade ago providers switched to focus more on corporate sales.
Around one in five businesses make cash plans accessible to workers and now many SMEs are viewing this benefit as a key part of their wellbeing strategy. However, the market is evolving towards more bespoke solutions tailored by the type of business the customer operates in – for example, delivery drivers need a different solution to office workers.
To ensure a cash plan is successful and used effectively by the workforce, the key is to ensure that all aspects offered under that plan are a central location – on a single app or portal – to make it easier to find.
Just one element
A cash plan is just one element to improving financial wellbeing. Choosing a provider that can deliver a range of services that can holistically support financial wellbeing and mental health will offer additional relief to employees in their time of need. It’s crucial that employees can access personalised, on-demand advice from mental health experts who can then put a package in place to further support their welfare.
Finally, to proactively support financial wellbeing and the support employees can access, HR leaders and management teams need to promote the services and benefits to the workforce, whether that’s cash plans, mental health treatment, or other tools that can be applied in everyday life such as budget planning.
Supplied by REBA Associate Member, BHSF
BHSF is a market-leading health and wellbeing provider.
