Finances are a concern for many across the country at the moment. The Money Advice Trust found that 47% of UK adults were worried about their money and wondering how they might cope at the start of 2024. Individuals struggling with their financial wellbeing find that it impacts every area of their life, from their mental health to their relationships and their careers.
Managers and leaders who focus on building strategies to help their employees with their financial health see greatly improved workplace cultures. It can lead to increased job satisfaction, improved morale, and enhanced productivity as employees will be less likely to have a worrying financial situation impacting their financial wellbeing.
This article will explore how managers and workplace leaders can ensure that their employees can make the most of their pay and how employees can be set up for a brighter financial future.
1. Offer Financial Education Workshops
The best way to become financially literate is to pursue education. Managers and leaders who feel passionate about helping their teams make the most of each payslip would be doing them a massive favour by teaching them tools they can use to build financial stability.
Organising free workshops on budgeting, investing, and retirement planning can empower employees to make savvy financial decisions that stretch their money further.
2. Provide Discounts and Corporate Deals
Businesses can also negotiate corporate discounts with local businesses or service providers. Deals on gym memberships, cell phone services, or even groceries can add up to significant savings for your employees.
Platforms such as Benefits Cloud can come in handy in this regard; with over 2000 offers from many of the UK’s most loved brands, each member of your team will no doubt find offers they love!
3. Enhance Your Benefits Package
Following on from that last point, we also recommend that you regularly review your benefits package to ensure it meets your employees’ needs.
Benefits such as assistance with childcare costs or coverage for dental and medical insurance can have a massive impact on employees’ finances for the better, taking the weight off of their shoulders considerably.
One of the best ways you can create a benefits package that your team will love is to speak to each member of the team directly and figure out where they feel they need support financially.
4. Implement Flexible Working Arrangements
Allowing employees to work from home or offering flexible schedules can really help them save money.
Working from home means less money spent on commutes and food and coffee bought at the office. It also gives employees with children more flexibility in terms of childcare, potentially saving them money in the long term.
5. Encourage The Use of Public Transportation
Speaking of commuting, employers can assist employees with the cost of their daily commute, for example, by providing travel allowances for their employees.
If your business is in an area with good public transport, employers can promote its usage by offering subsidised passes or providing employees with season tickets. It’s environmentally friendly and can significantly cut down on commuting costs.
6. Consider Earned Wage Access Schemes
Earned wage access, officially known as an Employer Salary Access Scheme (ESAS), allows employees to access their wages as soon as they earn them.
By implementing the right applications, employers can install an integrated solution that works alongside their existing payroll and allows employees to access their wages before payday.
These schemes can be a great way to help employees budget more effectively, manage their money, and provide relief in times of financial hardship. Schemes such as these may even stand out to employees who are struggling as an alternative to credit or taking out loans. This will save struggling employees lots of future financial stress and massively aid their financial wellbeing.
7. Explore Employee Education Assistance Programmes
An employee education assistance programme (EAP) is a brilliant way to assist employees in advancing their careers without the cost of education and training landing squarely on their shoulders.
An example of this programme in action would be an employer partially or fully funding their employee’s undergraduate or graduate degree. The employee will then be able to use their training and knowledge to advance further in the company.
By supporting continued education, you’re investing in your employees’ futures while encouraging personal development that can, in turn, benefit your organisation.
8. Consider Introducing a Salary Sacrifice Scheme
Salary sacrifice schemes are designed to help both employees and employers save on taxes and give employees access to additional benefits.
Employees agree with their manager to ‘sacrifice,’ or give up a portion of their pre-tax salary. This money will then be put towards other benefits. Often, this money goes towards an employee’s pension, but it can also be put towards childcare, technology, etc.
You might question why an employee would choose this scheme rather than just buy these things after they’ve been paid. Well, salary sacrifice is non-taxable. This means that it will lower employees’ income tax, and also reduce their national insurance contributions. Not only do employees gain access to helpful benefits, but they will save more money in the long term by agreeing to a salary sacrifice scheme.
9. Regularly Seek Employee Feedback
Talk to your employees regularly to understand their financial challenges and needs better. This direct feedback can help refine your strategies for helping them get the most out of their earnings.
These tips can inform your strategies to enhance employees’ financial wellbeing and demonstrate that you’re an employer who genuinely cares about their teams’s financial health. By embedding finance-friendly policies and benefits into your business ethos, you’ll not only aid employees in managing their money but also build a more dedicated, happy, and productive team.
Remember, employees who feel their income goes further are often happier and more loyal. Investing in your workforce is a surefire way to foster a positive company culture where everyone, including the business, thrives.
We hope these tips have given you some inspiration. If you have any top tips on managing finances effectively yourself, don’t be afraid to share them!