REWARD
How could a workplace savings scheme help your employees?
T
he Money and Pensions Service estimated that, prior to the pandemic, 11.5 million people had less than £100 in
savings. This meant they would be very exposed if they suddenly received an unexpected bill. Often, people have the best intentions to put a little money aside and build a pot of emergency savings, but temptations and distractions can make it difficult to get round to growing a rainy- day fund. This widespread lack of financial security has wider impacts at home and at work. New research published in June 2022 found that 27% of all employees say money worries affected their ability to do their job over the past 12 months. That research can be found here: http://ow.ly/ ZANi30so5M2. The prospect of inflation rising into double digits later this year is likely to make this situation even worse For those employees under financial pressure, the impact is worse: of those that say bills and commitments are a heavy burden, 63% say their ability to do their job has been adversely affected. The prospect of inflation rising into double digits later this year is likely to make this situation even worse. The research, conducted by YouGov for the BSA, found that almost two-thirds (62%) of employees in Britain expect their employers to care about their financial well-being. However, just under a quarter (24%) think their employers do care, leaving a financial well-being ‘gap’ of 38 percentage points. The expectation that employers should support their employees’ general well- being isn’t at all new, though the focus on it has been growing. There’s currently particular focus on employees’ financial and mental well-being. How does it all work? Although the rising cost-of-living is now stretching many households’ finances, employers may be able to help those who are in work and able to save a little. This
Kanika Kharbanda, savings policy specialist at the Building Societies Association (BSA) explains how, now, more than ever, with the cost-of-living crisis, employees could benefit from a workplace savings scheme
| Professional in Payroll, Pensions and Reward | September 2022 | Issue 83 34
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