Is now the time for employers to act?
The UK is in the grips of a cost of living crisis with prices rising at rates we haven’t seen since the 1970s – energy, broadband, water, council tax, food, fuel and more. Most employees believe there is a role for their employers in supporting their personal financial wellbeing and only one in five are satisfied with the efforts their employers have made so far to help them manage their finances. Tackling poor financial wellbeing is not simply a question of remuneration; research shows that money worries can affect employees regardless of their level of pay. Employers are uniquely positioned to help deliver money guidance at the moments when their employees most need help. They are often engaged with many of their employees’ key life events, including starting work, changing jobs, becoming parents and retiring. As such, employers are well-placed to offer structured guidance and timely signposting to their staff, however this can be a dauting area for employers to address without the right help and partners.
Why should employers provide financial wellbeing support for their staff?
The need to support employees to develop their financial wellbeing is well-evidenced. The Money & Pension Service reposts research that estimates that money worries cost the UK economy £120bn and 17.5 million lost hours of work. Most employers now recognise a link between financial wellbeing and productivity, with nine out of ten saying that financial concerns impact upon staff performance.
Recent research indicates that;
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- – One in four workers have lost sleep over money worries;
- – 59% of employees say that current financial worries prevent them from performing at their best;
- – poor financial wellbeing can cost employers the equivalent of up to 17% of salary costs;
- – 46% of employees say that financial pressure affects their relationship with their manager;
- – Over 1 in 4 people could not meet an unexpected £300 bill without borrowing;
- – 18% of people and nearly 33% of younger adults are borrowing to meet everyday essentials;
- – 52% of adults report problems keeping up with bills which rises to 75% for single parents.
How can Just Credit Union help?
Just Credit Union is an ethical not for profit saving and loans cooperative with over 20 years of experience improving financial wellbeing and building financial resilience for Shropshire and Telford & Wrekin communities. We provide secure savings accounts and affordable loans often to people who are financially excluded. We make it easy for people who are financially stretched to develop a savings habit and we provide employers in our area with free payroll savings schemes. Payroll savings schemes are a fantastic way to help employers build financial resilience and reduce financial worries. It can provide a major element of a workplace financial wellbeing initiative.
Perhaps equally important is our wealth of contacts who can assist an employer to develop and deliver a workplace financial wellbeing initiative. We can save many hours work by using our partnership expertise and contacts to signpost businesses to reputable and reliable partners in the key areas related to the development and delivery of a financial wellbeing programme.
What next?
Simply arrange an initial chat by emailing steve.barras@justcreditunion.org he can discuss what is available and the specific objectives of your business.
