Financial wellbeing is becoming a critical challenge to the UK workforce. The Cost of Living Crisis underlines just how important financial wellbeing is. Without financial wellbeing life becomes very difficult. As a general term, it refers to how we feel about money and whether we have the financial resources to meet short- and long-term goals. For employees, feeling financially secure is essential to overall wellbeing and job satisfaction. It is not only important for employees to be able to manage their day-to-day expenses, but also to plan for their future, and especially retirement.
Employers have a critical role to play in ensuring their employees’ financial wellbeing. Studies have shown that financial worries are a significant source of stress, which can negatively impact an employee’s work performance, productivity and overall health. Implementing financial wellbeing policies and strategies can help to alleviate employees’ financial stress, boost morale and improve job satisfaction.
Forward-thinking business leaders understand that to attract and keep the best staff for their enterprises, an upfront and extensive strategy for financial wellbeing in the workplace is vital. Not only do your employees feel a much greater sense of job satisfaction, but this in turn leads to higher productivity levels among the workforce.
Financial Wellbeing Through Pension Planning for Retirement
One of the most important aspects of financial wellbeing in the workplace is retirement planning. Employee satisfaction, particularly when it comes to keeping your talented team in place for significant parts of their careers, need to have access to robust pension schemes to ensure that they can retire comfortably. Employers can help their employees by offering an appropriate defined contribution (DC) pension scheme[DM1] where employers can match employee contributions or provide other tax-efficient incentives to encourage employees to participate in the pension scheme.
Employers can also provide employees with financial education and support to help them make informed decisions about their finances. For instance, employers can offer seminars, workshops or one-on-one consultations with financial advisors. These services can help employees to better understand their financial situation, teach them to create and manage a budget and set both short-term and long-term goals.
At KGJ, our deep experience in pensions and pension planning, not to mention long-term investments and savings, put us in the ideal position to offer bespoke, confidential and trustworthy advice to both business leaders and employees regarding retirement plans, helping secure financial wellbeing for both parties.
Financial Wellbeing for Employees Through Benefits Packages
Another great way employers can support their employees’ financial wellbeing is by introducing a benefits package. These packages can include health, dental, life and disability insurance, not to mention a host of other types of cover. Offering a range of benefits can help employees to manage their health and financial risks, reducing the stress and worry of unexpected expenses. Many employers also align their benefits packages with their length of service, providing employees with greater benefits as they continue to contribute to company success.
Some employers choose to offer emergency financial assistance programs to their employees too. These programs can provide short-term financial support should any unforeseen expenses suddenly arise, such as medical bills, car or home repairs. Providing this type of assistance can help employees to manage unexpected shocks, significantly increasing their financial wellbeing. Indeed, this range of services is sometimes referred to as ‘financial security insurance’.
With our experience and contacts, KGJ can help businesses to craft the perfect benefits scheme for their employees, sourcing the best comprehensive deals through our network of providers or hand-picking the best solutions for your specific needs. With your business’ and employees’ best interests as our only concern, there’s no need to risk going with a provider that offers too much or too little when it comes to financial security among your workforce.
Flexible Working for Financial Wellbeing
Employers can also offer flexible work arrangements that can help employees to manage their finances better. For instance, allowing employees to work from home can help them save on commuting costs, reducing overall expenses. Offering flexible work hours can also help employees to manage their time and responsibilities.
Being able to offer employees financial wellbeing resources is a critical component of overall wellbeing. By implementing wellbeing policies and strategies, employers can help their employees to feel more financially secure, reducing their stress levels and improving their job satisfaction. Providing benefits packages, robust pension schemes, financial education and support, emergency financial assistance programs and flexible work arrangements are all ways to help secure your employees’ financial wellbeing and can help keep your talented team from needing to look elsewhere to achieve financial security.
Financial Wellbeing in Your Workforce with KGJ
Whatever worries or concerns you may have about introducing financial wellbeing policies for employees, or your fears in not doing so, the experts here at KGJ understand the benefits, and the market and will always focus on the tailored needs of each client. If you’d like to talk to us about the way forward, call us on 01384 390909 or email email@example.com.