The current cost of living crisis is leaving many people understandably worried about their finances. This article will look at ways in which Employers can help their staff at this difficult time.
1. Salary Sacrifice Schemes
Employers can offer what is known as “Salary sacrifice schemes”. These schemes allow staff to pay for things through payroll and therefore they are paid for before the employee receives their salary. This reduces the amount of tax paid on certain items and therefore can help your employees to save money.
Pension contributions are often paid in this way, but similar payments can also include payments for transport such as bikes (cycle to work scheme) and ultra-low emission cars.
2. Help employees to reduce expenditure
Employers could offer free or subsidised meals, drinks and snacks at work to help support staff who are struggling with the everyday cost of living.
Companies could provide staff perks such as regular deliveries of healthy snacks, fruit boxes or freshly baked goods. There are a whole plethora of products available online.
Employers could offer more flexibility for their staff such as working from home (where possible) to avoid the cost of commuting to and from work.
3. Promote financial wellbeing
According to a report by the CIPD, the professional body for HR in the UK, one in four employees say money worries affect their ability to do their job and this includes even those employees earning higher incomes.
It is now more important than ever that Employers ensure they are paying real living wages and provide regular salary reviews and increases where possible. Businesses could also consider paying one off lump sum payments to staff during the winter months to assist with the increased cost of living.
More than 30% of UK adults know they should save more for retirement but during difficult times, it may be tempting for employees to reduce or stop pension contributions to save money. Pensions are one of the biggest workplace benefits, so it’s important to communicate their benefits to help employees avoid making decisions which could impact them in the future.
Companies could also appoint designated members of staff who can assist employees by talking about any money worries that they have confidentially and in a safe place and sign-posting them to any relevant financial advice and guidance such as the Money Advice Service.
4.Employee health and wellbeing
Having a healthy workplace is important for people to flourish and reach their full potential, and all businesses should be taking additional measures to support employee wellbeing and health.
- Consider an employee assistant programme (EAP) – Employee assistance programs can offer employees access to online resources, counselling, and referral services if they’re having money problems.
- You could consider providing a subscription to a mental health resource such as Headspace for Work, which is a science-backed meditation and mindfulness solution for the workplace
- Provide access to discounted gym memberships or fitness classes which are great for physical and mental health
- Promote the cycle to work scheme and encourage your staff to ride to work by subsidising the cost of a bike
- Appoint ‘well-being ambassadors’ in your business who can promote employee mental health and wellbeing. This could be through regularly sharing resources or providing access to talks or workshops.
- There are also a number of free resources available online to support employers and their staff. For example Mind.org.uk have produced a series of free resources to help improve mental wellbeing in the workplace
Employment Law Support
Allington Hughes Law provides an Employment Law Helpline that advises and assists you on day-to-day HR matters as they arise.
They can provide this service on a pay as you go basis or on a fixed retainer plan that is tailored to your business need. To find out more contact Melissa Bramwell – melissa.bramwell@allingtonhughes.co.uk or telephone on 01978 291000
