40% of UK workers live pay day to pay day - how can employers help?
- Date: Monday 17th February 2020
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Recent research published by Willis Towers Watson shows that 40% of UK workers live from pay day to pay day with no emergency savings. The research showed that women were more likely to be financially stressed (48%) than men (34%). Also, younger workers are nearly three times more financially stressed than older workers (56% vs 20%).
Half of workers think their employers should be providing tools to help improve their finances and amongst millennials this is 59%. The research showed that 60% of employees with financial worries would leave their current employer for a pay rise of just 5%. There is also a link between employees with financial worries and an increased risk of mental health difficulties.
So, what can employers do to assist employees to achieve improved financial health and reduce the risks of workers leaving for a marginal pay increase?
Tips to help employees better manage their finances
- Invite experts such as your pension provider and local bank mortgage advisors to speak with your employees.
- Seek ways to help employees manage work related expenses e.g. provide corporate credit cards.
- Consider negotiating a group life insurance scheme for your employees. This can provide a lower policy cost than your employees might pay for a private scheme.
- Provide employees with group income protection insurance to assist them if they are unable to work due to injury or illness.
- Introduce an employee assistance programme to provide counselling services.
- Offer employees access to regulated financial advice. Employers can offer up to £500 pension advice a year and receive tax and national insurance contribution relief.
- Find out if local gyms or restaurants will offer employee discount schemes.
- Offer health insurance through the workplace.
Source: Gavin Parrott