COMPLIANCE
As a result, there has never been a greater time to focus on personal financial management within homes, and, like other trends, employers are starting to develop means and ways to acknowledge this with extended benefits. How financial well-being guidance is changing The subject of financial well-being automatically suggests financial advice and guidance aimed at the senior executive level, or the longer standing, retirement- approaching wealthy employee, involving pension and wealth-related planning. With the widespread changes prompted by the cost-of-living crisis, however, today’s financial well-being offering is now being targeted at all levels of employee within organisations, ranging from the starting graduate to those approaching retirement. The onus of the advice has also changed in approach, given that recent studies suggest 90% of illness and disease is stress-related and money is often cited as the biggest cause of stress within the UK. Employers still suffering from financial difficulties and trying to regain pre- pandemic levels of revenue are therefore taking steps to facilitate the provision of financial well-being support for employees. This is to demonstrate that the subject matters to them and to express their duty
of care in acknowledging the difficulties employees are experiencing, given the current economic climate. Providers in this area are offering a variety of forms of support to employees, including: l access to digital apps l coaching
sufficient level of engagement with the various tools and support on offer. This subject is certainly becoming a priority for any organisation focussing on their people strategy or looking to improve their culture. As a result, the decision makers involved tend to heavily involve human resources, but senior management are also significant stakeholders, given this subject is becoming such a priority. Other ways employers can help There are other ways for employers to extend support from a financial perspective. Rather than simply increasing cash provided to employees in the form of salary of bonus (which is always going to be subject to income tax and NI through the pay as you earn system), employee loans, using trivial benefits or introducing salary sacrifice arrangements can all help to optimise net pay if structured correctly. In a tricky and uncertain economic environment, coupled with a less stable and more fluid recruitment market, it’s important for employers to balance prioritising staff retention with still creating business stability and growth. Providing meaningful financial education to the people who are going to support this security and success in the future is a good place to start. n
l executive counselling l educational seminars.
Essentially, the focus is towards optimising disposable income and developing a good relationship with money, building long-term goals for planning, including advice on individual savings accounts, pensions and tax. Different generations will have different priorities at different stages, so the current financial well-being offering tailors to several scenarios, including: l buying a house
l marriage l children
l inheritance planning l phasing retirement l saving and prioritising debts.
Forward-thinking employers will know that if you look after your people well, the results speak for themselves. Success in this area is generally measured by employee feedback in relation to culture and support, less unproductive days spent and fewer sick days, including a
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| Professional in Payroll, Pensions and Reward |
Issue 91 | June 2023
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