- To support employees with their financial wellbeing, employers should review the benefits they already offer and check whether staff know how they can help.
- Implementing financial wellbeing services that include education and coaching is cost-effective.
- Financial wellbeing support can be tailored to match an employer’s budget and employees’ needs.
Close Brothers Asset Management’s January 2024 report Spotlight on UK financial wellbeing found that only half of UK employers have a financial wellbeing strategy for their employees, despite the continuing cost-of-living crisis. Simply raising salaries is not an option for many, so employers may need to think creatively about how they can provide financial support without breaking the budget.
Support in place
A useful place for an employer to start is to review the benefits it already offers, to determine if these are being used to help with finances and whether employees know about them or how to access them. Examples of these could include discount schemes, bikes-for-work schemes, subsidised eyecare or dental care, as these can help employees save money on day-to-day necessities.
Existing benefits can be leveraged by arranging sessions with their provider, for example, to provide a clear explanation on how the scheme works. Organisations can also support employees with financial wellbeing by designing internal policies that are more inclusive of lower-paid employees who might struggle to stretch their money for their entire pay periods, says Sam Lathey, chief executive officer of Bippit. “For example, does the expenses policy require staff to wait six weeks to be paid? A small change here can be relatively inexpensive and take potentially significant financial pressure off,”
There are many free resources for employers to utilise. One option is to direct employees to the money sections of the major UK newspapers for tips and guidance tailored to varying needs, says Stacey Lowman, head of employee wellbeing at Claro Wellbeing.
“Banks often offer a lot of resources too, all of which are available online, such as guides and tools to help manage finances more effectively,” she says. “The Office for National Statistics features calculators and wealth comparison tools, so that employees can get a feel for how their household income compares to the population average. For ideas around what kinds of content to share and when to share it, employers can always use a financial wellbeing calendar for the key personal finance dates of the year.”
in addition, employers could signpost employees to government resources such as the MoneyHelper website, says Jonathan Watts-Lay, director of Wealth at Work. “It offers free and impartial help with money, pensions and everyday savings,” he explains. “There are also various tools and calculators available, such as budget planners and pension calculators.”
Financial education
Financial education sessions, whether online or face to face, can cover a range of topics to support employees, such as how to make the most of workplace benefits, understanding their payslips and tax, saving for a rainy day, or retirement.
“Budget-friendly support can include access to low-cost coaching from experts,” says Lowman. “Quick-win solutions, such as webinars and interactive sessions on relevant financial topics, can offer immediate motivation for employees needing a boost.”
Employers could consider investing in financial wellbeing services that include financial education and coaching. Providing this through the workplace not only helps employees to understand topics that are important to them, but also shows that their wellbeing is being supported, resulting in higher retention and loyalty.
“Some services can provide additional value, for example, offering employees a call-back service following financial education sessions for further help or guidance,” explains Watts-Lay. “This provides the opportunity for participants to discuss their personal circumstances and is offered free of charge.”
Employees will have different financial priorities throughout their career, so employers may want to consider introducing a savings scheme with an auto-enrolment mechanisim to encourage them to save for the future, or redirect some of their pension contributions into an accessible savings pot for long- and short-term goals.
Sarah Steel, head of financial wellbeing at Cushon, explains: “A pensions salary sacrifice [arrangement] offers national insurance (NI) savings for both employer and employee, enables higher-rate taxpayers to receive full tax relief through payroll and allows employees to maintain their pension contributions while putting some extra pounds into their pay packets. The employer NI savings can also be used to provide additional support, such as funding financial education programmes or workplace savings schemes.”
Tailored financial aid
Implementing financial wellbeing support may not be as costly as employers might think, as it can be tailored to match their budget and employees’ needs. More employers are offering personalised, unbiased guidance through providers, with the most common topics employees have requested including managing household bills, saving strategies and consolidating pensions, says Steel.
Employers could also train some employees to spot colleagues who are financially stressed and provide financial first aid.
“Their role is to provide a safe space to have open conversations about money and point in the right direction in terms of helpful resources,” says Lowman. “Employers can also implement regular sessions dedicated to tackling personal finance tasks employees may have been putting off. It can be an effective way to actually help tackle their finances head on and demonstrates a willingness to support staff with their finances.”
Whatever their approach, it is crucial that employers use a benefits provider that offers value for money when working within a limited budget. Communication and feedback are essential to understand what support employees want and need. Employers can then evaluate what offers the most value for their benefits spend.