The link between financial issues and stress is well established, with 34% of employees distracted at work by their money worries, according to the latest ‘Employee Benefits Trend Study’*. The potential costs of workplace mistakes to a company are clear. With 39% of employees reportedly living from payday to payday, there are simple steps that companies can take to support their financial management and try to reduce the costs of stress and absenteeism.
The Office of Budget Responsibility (OBR) reports that consumer spending rose by 3.2% in 2017 (the fastest rise since late 2007), while the saving ratio fell from 2.8% in 2015 to -0.3%**. All of this against a backdrop of flat real incomes, rising household energy bills and rises in motor insurance costs (with the change in the personal injury discount rate).
Educating employees on managing debt and providing tools they can use to help improve their money management are two ways that companies can help to ease financial stress. If employees have debts as well as savings, they need to understand that paying off their high interest credit card debts may save them more than they earn from any savings interest.
Financial advice on debt and money management can be found via the Citizens Advice Bureau, or from employee financial management specialists. Loan and credit card calculators are simple tools that can be made available online to help employees manage their money, together with budget planners and savings calculators.
Savings and emergency funds
Savings, or even an emergency fund for unexpected expenses such as car breakdowns, or heating repairs might seem like an impossible dream for some. However, according to The Money Advice Service, saving just £3.00 per day (the cost of a paid for sandwich) adds up to £1,095 in savings per year.
Education and finance tools
Our targeted financial courses can help your employees with specific money problems in a non-judgmental way. They will also receive helpful tools and tips to take away and use. As independent financial specialists, we will not sell your employees any other products.