April, a month where we usually look forward to better weather and longer daylight hours, has arrived but with a very different outlook for many of us, as employees and employers. This April has also brought with it a time we have been fearing, with the cost of energy bills potentially increasing by 54% in line with the Ofgem price cap (and a similar amount again in October). If this was not enough, households are also facing the highest rate of inflation in the UK for 30 years which is expected to increase further as many other costs rise significantly and has a knock-on effect to businesses as employees face added financial stress.
There are few individuals that are not impacted by such challenging times and for many employees and businesses alike, spending must be reviewed. Financial worries can have a significant effect on an individual’s health which, in turn, is likely to impact their performance and attendance at work. This can then have a knock-on effect to your business at a time you need all employees to be engaged and fully focused on their work.
So, how can you support your employees with the rising cost of living? For most employers, it is not just as easy as giving all employees a pay rise to help them get through this period, and so careful consideration of what may be available within your means in important. Therefore, you need to think differently and consider what is available within your means.
At Integrity365, we advise many companies of all shapes and sizes, operating in very different sectors, and so we have been able to offer a range of solutions based on their individual needs:
Financial Education
It is commonly noted that too few adults in the UK understand their finances and are struggling with some of the more basic areas of financial planning, such as creating a budget, reviewing expenditure and managing debt.
Prior to the pandemic, there was a significant increase in HR professionals looking to complement physical and mental wellbeing support with financial education which has only been furthered as the financial impact of the pandemic has progressed. This need is expected to increase further as the effects of the current inflation pressures take their toll on workers.
Integrity365 offers financial workshops and clinics which aim to help employees take control of their finances. By truly understanding their current income and expenditure, evaluating what is essential and non-essential spending, we can help your employees see the true picture of their household finances. This will hopefully help them take steps to improve their position or, at worst, understand the scale of the challenge they are facing.
Salary Exchange for Your Workplace Pension
In addition to the more well-known inflation factors (energy, fuel, shopping, interest rates, etc) you will be aware that employers and employees will see a temporary National Insurance increase of 1.25% percentage points from 6th April (from April 2023 NI rates revert to current rates and a new NHS & Social Care Levy of 1.25% is introduced). This places a further strain on employers and reduces the take-home pay of employees at this challenging time.
Although salary exchange is not a new concept, the team at Integrity365 are meeting new clients constantly who do not use salary exchange for their workplace pension scheme. At the time of writing this article, I have outlined to a potential new client a possible employer NI saving of £4,100 per annum for a company with 26 employees. This is not an insignificant sum of money for a company, and remember the employees are better off too as they save employee NI on their personal payments.
If you are one of the many UK companies not currently using salary exchange, feel free to contact Integrity365 and we can outline the benefits for you and your employees so you can quickly understand the potential value.
Maximise Your Current Benefits Package.
Many employers offer a range of traditional employee benefits such as Group Death In Service, Income Protection and healthcare provision. Within these services, there may be valuable bolt-on offerings available that you are not aware of but could be valuable to your business and employees.
Employee Assistance Programmes have been available for many years, however, they have often been treated as a secret. In more recent times, more of our clients now actively promote this service to their employees (via email or more traditional methods such as posters in staff areas) and is now more widely recognised as a valuable tool. Employers are able to signpost their employees to someone that will provide professional and confidential support on a wide range of areas including financial worries.
As an employer, be sure you truly understand the full features of the employee benefits offered as you are paying a premium for the respective cover. Integrity365 and our strategic partners can help you understand the benefits you have in place via an audit to ensure you maximise your return on investment.
Your employees are your greatest asset, so by supporting them with an appropriate benefits strategy, especially in these challenging times, you can help improve their overall wellness and financial worries. Even if you cannot offer a significant pay rise to your team as the costs of living rise, these valuable benefits can help promote productivity in the workplace by reducing stress in employees and can help attract and retain quality personnel.
Get in touch with one of Integrity365‘s specialist Corporate and Independent Financial Advisers who can help you tailor a reward strategy to meet your requirements and budget on 0117 450 1300.
