15 Feb 2023

Why supporting your employees’ entire household makes sense

When employees are in a good place financially, physically and mentally, they’re more engaged with their work

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The cost-of-living crisis is hitting the UK hard and affecting employees’ financial, physical and mental wellbeing.

An estimated 7.8 million people in the UK are struggling to keep up with rising costs. The statistics are bleak, with experts suggesting that more price rises should be expected later in 2023. The monthly pay packet has never had to work so hard, and in many cases it simply cannot stretch far enough.

While some households are cutting back on non-essential items to make ends meet, others are missing bills and getting into debt. Financial health is linked to mental health and the level of financial anxiety many people are facing can lead to mental health problems.

Bonuses and pay rises

Towards the end of 2022, many organisations announced that they had given cost-of-living bonuses. Many more raised salaries to reflect the rising inflation rate. But, if the cost-of-living is predicted to increase again before we reach stability, is this enough?

Employees understand that businesses are also affected by financial uncertainty and it’s not always possible to supplement annual salaries with ad hoc bonuses unrelated to performance of profit.

This is why businesses need to offer their people employee benefits that put the power to save in their hands.

Help to stretch salaries

You can offer your employees many financial wellbeing benefits that will help them make household savings.

One is a cashback card that could earn your employees money from their weekly shop. The potential earnings will vary from retailer to retailer – anything from 4% to 6% or even 15% cashback from a weekly shop. While such earnings might be small in isolation, using the card as a payment method is where the earnings can add up - potentially to hundreds of pounds a year.

With the option to add business funds alongside employee top-ups, an employee cashback card is an invaluable way to provide sustainable and cost-effective financial support for your employees’ households and significantly lessen the burden of the rising cost of living.

A cashback card can also be used to distribute rewards and bonuses. The versatility adds to its effectiveness and is just one reason why it’s becoming such a popular employee benefit for employers seeking to support their employees.

Take time to embed and educate

Whenever you add a new employee benefit, it’s essential to promote and educate employees on when and where they can use them. Even when there’s the opportunity to earn cashback or save money, employees may not see the true value if the process isn’t explained.

Financial anxiety can impede mental wellbeing. When not in a place of good mental health, it can be challenging to make decisions or change behaviour – even if it’s for the better.

Bringing external people in to offer financial education or giving access to money management apps is another way to empower people to make better choices on their spending.

Make employees’ wages work harder

When employees are in a good place financially, physically and mentally, they’re more engaged with their work. By supporting them and their household, you’re helping to alleviate their burdens. It’s a small price to pay when helping them will also help your business.