Ways to Help Employees with Cost of Living Crisis

Many employers are either looking at a salary review if they can afford it or a one-off cost of living discretionary bonus which could be paid as a set amount over the winter months to assist with spiralling costs. It is essential to make it clear however that the discretionary bonus is a one-off bonus, and the payment will not set a precedent for future bonus payments.

Other areas to consider helping your employees through the cost of living crisis could be the following:

1. Consider employee discount schemes
   Some workplaces negotiate discounts to save their employees money on the things they want and need to buy.  These can really make a difference now that people are seeing increased pressure on their finances. For example, many offer retailer discounts, transport deals, company gym memberships, discount on eating out and days out etc., but also better rates on mortgages and financial planning. Some even offer tech purchase schemes, where spending on tech can be paid off over time. You could look at something like Perk Box.
2. Offer an Employee Assistance Programmes
   Many workplaces offer an Employee Assistance Programme (EAP) to help employees deal with personal problems that might impact their work performance, health and wellbeing. An EAP can offer employees a wide range of support, including online resources, counselling, legal support and referral services, on what to do if they are struggling with their finances. Health Assured offer EAP schemes and your consultant can put you in touch for preferred rates.
3. Provide debt support
   Many companies offer financial education seminars on debt management to help employees understand how to manage and pay off debt, and what help is available. Some companies now also offer loan consolidation through payroll, to support those who need help paying off their debts. You could offer discretionary interest-free hardship loans to employees. However, this will only help if the employees can afford to repay the loan. So, have parameters in place with carefully drafted wording and signed paperwork.
4. Introduce salary sacrifice schemes
   Salary sacrifice schemes that allow employees to pay for things through their company payroll to reduce the amount of tax paid can help them to save money. It is very common for pension contributions to be paid this way, but can also include payments for transport such as company cars, bikes, and bus passes, and even mobile phones, gym passes and health and dental care. Consider making your benefits package more flexible so employees can swap certain benefits they do not need for money.
5. Help employees to make the most of their savings
   Many employees say that the increase in the cost of living has meant that they have reduced or stopped any regular savings. However, for those employees who can still afford to save, it is more important than ever that they make the most of these hard-earned savings.  Savings and investment accounts offered in the workplace including workplace ISAs, can provide a convenient way for people to save as deposits are often taken directly from salary making it habitual and effortless.  In addition, these accounts may also offer discounted fees.
   Many workplaces also offer the opportunity for employees to invest into shares in the company via a workplace share plan including Save As You Earn schemes and Share Incentive Plans.  Typically, these plans either offer attractive tax savings, or offer employees the option of buying shares at a fixed price in the future. WEALTH at work are a leading financial wellbeing and retirement specialist to consider working with to provide information to employees.
6. Promote pensions
   It can be tempting to stop or reduce pension contributions when times are tough. However, a pension is one of the biggest workplace perks so it’s important that the benefits of them are well communicated to help employees avoid making decisions that they will likely regret later on in life.
7. Signpost external support services
   There are many support services available to make employees aware of. For example, budgeting tools are available online such as MoneyHelper’s budget planner. For those struggling to pay their bills, Citizens Advice can help them to work out what benefits or grants they may be eligible for such as the one off payment of £650 to low-income households on means tested benefits such as Universal Credit, as well as the £400 energy bills discount due in October. If debt is something that employees are worrying about there are many debt charities out there such as StepChange and National Debtline, who can help people to fix serious debt problems. Or if employees are in debt to their energy supplier, many of them are offering grants to help.
8. Communicate your benefits
   No matter how good the financial wellbeing support is that you have in place, if it is not well communicated and understood then it’s likely that it will be overlooked by employees.  So making sure employees are aware of all the benefits you offer, and that the information provided is up-to-date and relevant is key. Financial education is also essential to help employees fully understand their benefits.
9. Introduce financial education programmes
   Many UK adults say they know the amount of money they spend on all of their essential bills (mortgage, rent, bills, food and energy) each month, but most do not actually keep a budget and know what they can spend each month suggesting that in reality, many actually aren’t aware of how much they spend.
   Financial education and guidance in the workplace can make a huge difference, giving employees the opportunity to learn about budgeting, money saving tips, saving, debt management, and retirement planning etc. Many people discover really important lessons which make a big difference to their finances.
10. Introduce a company food bank for employees to contribute to for less fortunate colleagues to access.
11. An internal advert board could promote skills and services that employees can offer each other. There may be employees with specific skills, interests, or hobbies outside of work that they can advertise to help other employees. For example, a keen gardener helps another employee (a keen baker) in exchange for a birthday cake.