The cost of living crisis is affecting many people and 36% of UK adults say they are already cutting back on what they spend.* Pay rises are one option to help people cope, but this is not always possible, and even if it is, companies are unlikely to be able to keep up with rampant inflation. However, there are many other ways workplaces are supporting their workforce to improve the way they manage their money to improve their financial wellbeing.
WEALTH at work, a leading financial wellbeing and retirement specialist, outlines below some of the ways to help your employees through the cost of living crisis and protect their savings.
1. Consider employee discount schemes
Some workplaces negotiate discounts to save their employees money on the things they want and need to buy. These can really make a difference now that people are seeing increased pressure on their finances. For example, many offer retailer discounts, transport deals, company gym memberships, discount on eating out and days out etc., but also better rates on mortgages and financial planning. Some even offer tech purchase schemes, where spending on tech can be paid off over time.
2. Offer an Employee Assistance Programmes
Many workplaces offer an Employee Assistance Programme (EAP) to help employees deal with personal problems that might impact their work performance, health and wellbeing. An EAP can offer employees a wide range of support, including online resources, counselling, legal support and referral services, on what to do if they are struggling with their finances.
3. Provide debt support
Nearly a quarter (23%) of UK adults say that being in debt is one of their biggest financial concerns.* Many companies offer financial education seminars on debt management to help employees understand how to manage and pay off debt, and what help is available. Some companies now also offer loan consolidation through payroll, to support those who need help paying off their debts.
4. Introduce salary sacrifice schemes
Salary sacrifice schemes that allow employees to pay for things through their company payroll to reduce the amount of tax paid can help them to save money. It is very common for pension contributions to be paid this way, but can also include payments for transport such as company cars, bikes, and bus passes, and even mobile phones, gym passes and health and dental care.
5. Help employees to make the most of their savings
Over two fifths (42%) of UK adults say that the increase in the cost of living has meant that they have reduced or stopped any regular savings.* However, for those employees who can still afford to save, it is more important than ever that they make the most of these hard-earned savings. Savings and investment accounts offered in the workplace including workplace ISAs, can provide a convenient way for people to save as deposits are often taken directly from salary making it habitual and effortless. In addition, these accounts may also offer discounted fees.
Many workplaces also offer the opportunity for employees to invest into shares in the company via a workplace share plan including Save As You Earn schemes and Share Incentive Plans. Typically, these plans either offer attractive tax savings, or offer employees the option of buying shares at a fixed price in the future.