28 May 2020

Five ways to support employees’ financial wellbeing through difficult times

Financially, this is a worrying time for many people. Employees working in sectors hardest hit, retail, travel, hospitality and professional services, are on furlough, uncertain when they will be able to return to work. Others are being asked to take a pay cut to avoid redundancy. Even those whose services are in high demand are concerned about the impact the current situation is having on the wider economy, and how that will impact their personal finances.

Worry, even low-level anxiety, impacts employee mental health. And we know that employers are extremely concerned about this issue at the moment. It impacts sleep and takes its toll physically. At a time when we all need to pull together, we need our employees to be rested, fit and mentally resilient. Here are five ways an employer can show employees they care about their financial wellbeing.

1. Review your organisation's approach to financial wellbeing in light of the current situation

If you don’t have one, now is a good time to define and pilot support. Ask staff what help they most need to give them financial peace of mind during this difficult period. A short survey will do, now is not the hour to be issuing a national census style questionnaire.

Prioritise the support you offer on the basis of what staff say they most urgently need. Make sure you communicate the survey results to staff with a plan of action. Acknowledge that financial wellbeing is a critical part of every employee’s wellbeing and encourage them not to suffer in silence but to ask for help.

If you have an online financial education package remind staff it is there for them to use, if only to provide peace of mind.

2. Address burning fires

For a host of reasons, a percentage of your workforce will be struggling with debt. Triage these employees as high risk of mental harm. Contact each individually to talk about how you can help. The priority here is to stabilise their financial situation and prevent debt escalating. Employers can consolidate debt and offer affordable, salary deducted loans with a fair and transparent pay back plan.

3. Help salaries go further with employee savings

Even staff in robust financial health will appreciate help saving money on everyday purchases. Even if you provide staff with access to an employee savings platform, it’s amazing how quickly they forget to check it, especially now that so many are working from home and missing posters dotted about the office reminding them to do so.

Staff can save on everyday essentials such as the supermarket shop. For those looking to buy items to make their stay at home more comfortable, many platforms contain discounts from a vast range of retailers, offering fitness equipment and gadgets, to technology to support home learning. These are usually constantly updated with new offers, so encourage staff to login and check what’s been added on a regular basis.

4. Childcare

Employers who are still running childcare schemes can encourage their employees to continue saving money which they can bank for future childcare costs. And for employees who opened a scheme but have stopped using it, provided they keep using the vouchers within 12 months of the last contribution, they can keep that money-saving option in play for future use. For those who are not part of a voucher scheme, the government has confirmed it will pay 30 hours of free childcare under the scheme.

5. Cycle to work scheme

Key workers are understandably feeling nervous about travelling to work on public transport. Many are choosing to cycle to work, perhaps for the first time ever, while roads, even in major towns and cities, are so quiet. At the same time, employees working from home are being encouraged by the government to exercise. If your organisation is a member of the cycle to work scheme do remind employees that they can purchase a bike at a reduced cost, through an associated online retailer and have it delivered to their home.

Not every employee will be struggling financially. For many people it may be a niggling worry in the back of their minds. While you are focusing on employees physical and mental health don’t forget to include their financial wellbeing. Once life returns to “normal” you’ll have set a solid foundation to discuss longer-term financial wellbeing such as pensions and savings plans.

This article is provided by Edenred.