Harness the power of financially resilient employees

Why we must talk about financial wellbeing at work

Resilience… we associate the word with strength. To be resilient means to be able to withstand and endure. Mental resilience was a hot topic at the start of 2023, but as the cost-of-living crisis took hold, the focus shifted to employee financial wellbeing and financial resilience.

There's a link between employee financial wellbeing at work and mental wellbeing. Financial anxiety - money worries - cost the UK economy £120bn and 17.5 million lost working hours (Money & Pensions Service).

Financial resilience matters!

Financially resilient employees = less anxiety and absenteeism – saving your business money!

Prioritising employee financial wellbeing at work doesn’t just help your people but your business, too. We’re in an era where companies need to carefully explore the types of employee benefits they offer to attract and retain top talent. Our recent research found that financial employee benefits and incentives were the primary considerations that would prevent employees from looking for a new role.

It's not about looking for the best offer - about what an employee can get. The cost-of-living crisis was an eye-opener for many who made cuts to afford the essentials. Your employees strive for financial resilience - to withstand this and whatever economic crisis may be around the corner.

Your organisation is being called upon to provide employee benefits that will enhance employee financial wellbeing and create a financially resilient workforce.

The business perks…? A less anxious, more loyal and motivated workforce that doesn’t bring their money worries to the office is more productive, helping your business thrive.

Financial wellbeing at work: where to start…

Your culture… that’s where.

Before you start investigating the types of benefits to offer to enhance employee financial wellbeing - go back to the basics. Start from the ground upward, ensuring your workplace culture is conducive to an environment of employee financial wellbeing.

Trust is essential, especially when discussing topics that may cause embarrassment. Many employees will feel uncomfortable discussing their financial wellbeing at work. Remove the taboo, open up conversations and be the solution!

Assess the situation

The types of employee benefits your people need to enhance their financial wellbeing will be dictated by various factors, including the age range of your workforce. In some organisations, five generations work side by side, all at very different stages in their lives.

The youngest may crave financial education, whereas those in their prime will be looking towards retirement. There’s no one-fits-all approach to financial wellbeing at work. To be impactful and benefit the employer and employee, your offering must truly enhance employee financial wellbeing.

Anonymised surveys are a great place to start. Use them to assess what matters to your people and what would make the most difference today, tomorrow, and in ten years. Think big picture! To be cost-effective and sustainable long-term, your employee financial wellbeing initiatives must be versatile enough to meet the diverse and evolving needs of multiple age ranges.

Avoid adding new employee benefits just to show you’re giving more or because your workforce demographic changes. Instead, use data-driven insights to map out the types of employee benefits that will stand the test of time.

How Financial First Aiders enhance employee financial wellbeing at work and beyond…

Financial First Aiders are trained to champion conversations about employee financial wellbeing. Invaluable for making financial wellbeing at work part of your core values, they can champion the use of your employee benefits and listen to colleagues experiencing financial difficulties. Equipped with the knowledge to provide initial counsel, they know where to turn if further financial guidance and support are needed.

Financial education & money management

Younger generations, especially those fresh out of school, college or university, need financial education most. Predominantly living at home with few demands on their outgoings, they may seem the least concerned about their financial wellbeing.

This isn’t the case.

They’re the group most in need of financial guidance, whether managing their monthly budgets today or setting the scene for tomorrow. Educating employees to adopt ‘good habits’, which include planning for the future, will enhance their financial wellbeing, creating financially resilient employees.

Our Financial Wellbeing App is an employee benefit that spans the diverse age range of your workforce, enhancing financial wellbeing at work and beyond.

Creating healthy habits!

Our Financial Wellbeing App links budgeting tools to your employees’ bank accounts to track their spending, allowing them to change their habits and set money aside.

Enhance employee financial wellbeing by making money management easier!  

• Access wage withdrawals ahead of payday.

• Track earnings as they work.

• Build up savings directly from their pay.

• Chat with qualified financial coaches.

• Check their financial health score and more. 

These are all the elements of a preventative approach to employee benefits - harnessing the power of education to enhance employee financial wellbeing and resilience.

Debt, loans & saving for the future

When an employee's financial situation takes a turn for the worse… offer the solution that eases the burden, relieves their concerns, and nurtures a state of financial wellbeing at work, home and beyond!

Our Financial Wellbeing App is so much more than a money management tool, consolidating an employee’s debt into one loan, repayable to your business via manageable monthly salary deductions.

Employees with bad credit will struggle to secure a loan with a high street lender, and their situation will only worsen if they fall prey to high-interest loans.

Financial anxiety + limited lending options = poor judgement and the risk of further debt.

When an employee completes their loan repayments, you can further enhance their financial resilience by encouraging them to continue deducting the same amount from their monthly salary. Instead of repaying a loan, you’ll set their money aside as savings, helping to create a nest egg for their future.

Employee discount schemes

Financial wellbeing at work goes beyond employee benefits and perks, although they are critical in enhancing financial resilience.

We participated in November’s Talk Money campaign, highlighting the impact employee discount schemes can have on your employees’ finances, especially when accompanied by a cashback-earing solution, which, when used consistently, could see your employees saving £1,679!

You can only achieve financial resilience with education on sound financial practices. Still, education only goes so far, and your employees’ monthly salary has a limit. During the cost-of-living crisis, your people’s wages have had to work even harder than usual, impacting their financial wellbeing and social, mental, and emotional health.

Employee discount schemes, cashback cards and salary sacrifice schemes are pivotal in making everyday essentials and ad hoc, high-end purchases more affordable. When combined with money management solutions, you can create a financially resilient workforce.

Harness the power of a financially resilient workforce with Pluxee UK

You agree that investing in a financially resilient workforce yields a return. Now, it’s time to embrace employee financial wellbeing at work, home and beyond.

The cost-of-living crisis brought employee financial wellbeing to the top of most HR agendas. First, there was the reaction - the one-off bonuses issued to help ease the financial burden. With employers also hit with the rising cost of inflation, increasing the cost of doing business, conversations around financial wellbeing at work turned towards sustainability.

Financial resilience is a topic for employers and employees, especially with the increase in the National Living Wage from April 2024. Businesses are battling to reach a position of financial resilience while also supporting employee financial wellbeing.

Reaching a state of financial resilience takes a combined effort, knowing your people and the right mix of employee benefits that make a positive impact on employee financial wellbeing. Having the right partner by your side is essential, making the difference between a financial wellbeing offering that becomes a lucrative investment instead of an expense.

Arrange a call with one of our employee engagement consultants for more information on creating a culture of financial wellbeing at work and beyond.

Sources:

MPS