The potential consequences of the rise of living costs has been a brewing subject for the last few years. With the health crisis that has hit the globe in the past two years, that has enhanced the issue even more. Although the majority of UK workforces began working from home where possible, employees are still struggling with financial burden. According to Financial Capability:
In 2022 UK households are facing a cost-of-living crisis with each set to see a £1,200 rise in outgoings as energy prices increase, inflation rises and taxes rise. Taxes are set to rise, as well as national insurance and council tax bills.
As more employees complain about financial stress and look to battle existing and future living costs, businesses will have a role to play in supporting their employees financial wellbeing. The question is: what can they do? Let’s take a look.
Employers won’t be able to support employees’ wellbeing if they are not aware of the current challenges they are facing. One way for employers and employees to make better decisions, is to gather they information they need. With this information on economic and employee behavioural changes, employers can then provide advice and resources they can use when it comes to managing their money.
Getting employees to understand how much they are spending, and therefore make smarter decisions every day, will ultimately be the beginning of improving their financial wellbeing. As a result of this, their financial confidence will grow.
Employee discount schemes have been around for a while now – allowing employees to use services offered by the business at a discounted price – providing financial perks for employees.
By implementing key insurance, this is one of the most effective ways in which businesses can support their employees in the long term. As employees spent more time away from their usual workstations over the past two years due to ill health, the need for protection products increased.
Along with insurance, products like Income protection Insurance allow employees to gain access to health professionals and counsellors – regular support if needed.
With the cost of living being one of the issues employees are facing currently, employers must put their employees as one of their main focus in their wellbeing strategy in 2022.