How to help your employees plan for their financial future

Do you feel daunted by what this winter may hold?

The Cost of Living Crisis is rarely out of the news cycle at the moment. As it continues, more and more employees are finding themselves unable to make ends meet. This is set to continue over the winter, as the Energy Crisis takes hold.

What is more, It is estimated that 21% of working Britons do not have a private pension designed to supplement their State Pension, meaning many will end up facing financial difficulties when they need to retire.

You can feel helpless in the face of the overwhelming cascade of problems facing our nation.

But as an employer, there are steps you can take to help your employees plan for their financial future. You can help them stay afloat during these tough times and bring a bit more financial stability to their lives.

Obviously, it goes without saying that there is a moral argument for providing tangible support for one’s employees during difficult times. But before we dive into how employers can help, we need to unpack how it can also benefit you from a business perspective.

How can it help your business?

Financial pressures can have a huge negative effect on an employee’s performance at work.

‍Recent research shows that poor financial well-being has led to 2.5 million private sector workers taking time off. This is a total of 13 million days off work. The cost to the employer is estimated to be £2.5 billion a year.

Not only does stress caused by financial trouble cause staff absence, but it can also affect productivity too. 15% of workers polled said that financial problems distract them whilst at work, meaning that their work was less than optimal for that period.

These figures do not even take into account the impact of staff absence on other team members. Colleagues are often left covering important work left by those off work, meaning they begin to creak under their workload.

There is a very real financial impact on your business when your team is worried about money. Providing them with the resources to improve their financial future can go a long way in reducing the impact of financial stress on the workplace.

So what things can an employer do to give financial support to employees in their company and reduce the impact of financial-related stress on their business?

Give financial education

Many of us struggle to manage our finances. It can be hard to know the best way to balance your books. Learning how to effectively look after your money can go a long way to helping anticipate and plan for financial hardship.

A Financial Wellbeing Education platform is an employee benefit that can significantly improve employee financial literacy. The platform gives your team access to hundreds of resources that educate them about all areas of finance.

Providing a financial well-being employee benefits tool like this for your team is an investment in their financial future, as it upskills them, helping them feel in control of their finances.

Encourage them to save for retirement

1.     Raise awareness

This week is Pension Awareness Week. This annual scheme, now in its 9th year, seeks to raise awareness of the need to save for retirement. They have a range of resources available to help you raise the issue amongst your team. This is the first step in helping your employees plan for their retirement.

2.     Check your pension provision

Secondly, as an employer, ensure that you are providing the very best provision for your team in terms of their workplace pension.Our Pension Consulting Service helps you ensure that you are providing the best possible solution for your team by providing a pension provider comparison. After our initial consultation, you will receive a brief report highlighting areas for improvement, future focus recommendations and actions to implement.

3.     Pension Reviews

Furthermore, to ensure that you are complying with all The Pension Regulator’s requirements, make sure you get a review of your pension provision. This deep dive assesses your auto-enrolment processes, ensuring that your duties are being completed correctly and that procedures are compliant.

Help them manage debt

Another factor that can really impact how well your employees cope financially is how they manage any debts they may have. Benefits such as Personal Debt Advice platforms can be a great way to support your team.

These platforms give employees access to online tools that can give immediate recommendations based on your employee’s individual circumstances, along with helplines staffed with qualified debt advisors. This type of direct and confidential help can really support colleagues who are struggling.

Employers can give vital support

Far from being helpless bystanders, employers can be active participants in supporting employers during the Cost of Living Crisis. From providing educational resources about financial matters to helping them plan for retirement and giving them tools to manage their debts, the chance to offer employee benefits that really make a difference has never been greater.