Using reward to support financial wellbeing
Whether it’s paying off debt, saving for a first home, paying for childcare or planning for retirement, there are competing financial priorities at every stage of life.
Personal finances can also be complex. Making sense of a payslip, choosing the right bank account or saving for the future and understanding complex tax arrangements/tax law.
There is a strong case for supporting staff to improve their financial wellbeing. However, employers need to know exactly what financial wellbeing is and how it is measured, to understand what they can achieve.
What financial wellbeing means
Being financially well, isn’t the same as being wealthy. It’s about being able to budget properly, manage debts, save for the future and absorb unexpected costs.
Having the knowledge to make informed financial decisions and understanding when and how to seek advice is key. This means there are many ways employers can help staff with their financial wellbeing, particularly if used strategically as part of their reward package.
What employers can do to support staff financial wellbeing
- Review your reward offer to ensure it includes benefits that will help staff manage their finances.
- Ensure the rewards you offer suit the individual needs of your employers.
- Communicate and promote your reward offer so staff know what benefits are available.
- Signpost staff to organisations that provide support and advice such as:
- Staff may be apprehensive about discussing money worries with their employer. Show you understand the importance of financial wellbeing and ensure employees know they can access support if they need it and who in your organisation they can talk to if they need help.
Useful resources for employers
- CIPD knowledge hub – employee financial wellbeing
- The DNA of financial wellbeing 2019/2020 – Neyber
- The financial capability strategy for the UK - the money and pensions service
- Your financial future - Barclays
Benefits to help staff manage their finances
Here are some benefits you may consider including in your reward package to help staff manage their finances:
- savings schemes
- subsidised accommodation
- will writing services
- debt management support
- financial education workshops
- vouchers and discounts
- budget planning guidance
- retirement planning support
- access to financial advice
- discounted travel
- credit union membership
- estate planning
- low cost loans
- supporting the cost of childcare
- rental deposit scheme.