Why Foxtek believes young people need tools like Bippit

Foxtek is a company on a mission: to bring recruitment into the modern era.

They’re taking a new approach in a bid to change outdated practices, improve a lack of care, and tackle the industry’s bad reputation. This has meant hiring younger professionals with a new approach.

Why? Tom Page, one of the two Founders of Foxtek, explains: “the reason we hire graduates or young professionals in their early 20s is that we like to train individuals in our methods right from the start.”

“We’re trying to disrupt the recruitment market. It’s therefore easier to hire young professionals who are coming into the industry with no preconceptions or perceived way of doing things, and then teaching them our way of doing recruitment.”

“As a management team, our background has also been taking graduates with no industry experience and teaching them how to be successful in recruitment so this very much plays to our strengths.”

Of course, this doesn’t come without its challenges…

“When we speak to potential new hires, more and more of them are saying they want support when it comes to improving their financial knowledge and overall wellbeing.”

Lack of financial knowledge in young professionals

Tom continues: “we’ve got a number of young individuals working at Foxtek who have not been educated on good financial practice. This should be taught in school but, unfortunately, it isn’t.”

“If successful, our staff can fortunately do well financially, and we feel a responsibility to make sure they get education and support on what to do with that money because ultimately they’ve worked really hard for it.”

In a bid to educate staff on what financial best-practice looks like, Foxtek started exploring financial wellbeing solutions to help their team, and this included Bippit.

“We looked at other providers in the market, but what we liked about Bippit was the user interface. It grabbed us more than any other product,”

 

Attracting new talent and giving them the benefits they want

The competition in the market to attract the best talent is fiercer than ever, which is why having a compelling offering (beyond just a salary) has become so important for business leaders. This is something the Founders of Foxtek have seen first-hand.

“When we speak to potential new hires, more and more of them are saying they want support when it comes to improving their financial knowledge and overall wellbeing. My business partner and I have been managing young professionals for a while, and are seeing a trend towards a real desire for this support.”

“I think graduates are a lot more mature now. Financial best practice is something that’s increasingly being talked about when discussing personal growth goals with staff.”

“When you merge this with the responsibility we feel towards our staff, getting financial wellbeing support from the professional coaches at Bippit was a no-brainer.”

 

What attracted Foxtek to Bippit?

Bippit’s financial wellbeing platform gives every employee access to a 1-1 financial coach. Someone with professional qualifications, who has trained for years and helped people for years. Alongside this expert guidance, employees can learn from impartial resources and plan with powerful financial management tools. All via platform that’s intuitive and simple, and available on desktop or app. This is what Foxtek was looking for.

“We looked at other providers in the market, but what we liked about Bippit was the user interface. It grabbed us more than any other product,” says Tom. “Despite working in different sectors, it feels like both Bippit and ourselves are approaching things in the same way.”

if you’re looking for a product that’s going to engage people (especially younger talent), Bippit is the best solution on the market.”

“Let’s face it, financial information can be quite a dull topic. But everything on the Bippit app is modern, and really interactive. It’s very visual and similar to other popular solutions which helps get buy-in from staff.”

“Younger professionals are quick at judging whether they like a product or not, so it has to engage them, and Bippit does a great job at that. We think our people will really get something out of it.”

 

What Foxtek hope to get from Bippit

Keeping staff happy and making them feel heard is key to retaining them and combating both the Great Resignation and The Cost of Living situation. When you consider that 81% of millennials want to work for a company that cares about their financial wellbeing, it’s no wonder why platforms such as Bippit are becoming increasingly popular.

As Tom describes: “good financial wellbeing is important at both a company and individual level. Based on what we’ve seen of Bippit so far, if you’re looking for a product that’s going to engage people (especially younger talent), Bippit is the best solution on the market.”

Supporting your own people

Along with the likes of HelloFresh and Beam, Foxtek is one of the many companies benefitting from Bippit’s all-in-one financial wellbeing platform.

Want to improve your team’s financial health? Book a free Financial Wellbeing Lunch & Learn for your workplace.

 

 

Retaining talent and staying competitive

With living costs continuing to surge, businesses everywhere are under pressure to adjust their compensation and benefits for employees, to retain their best talent, and stay competitive in the market.

The question that’s front of mind for most businesses right now is, what is the best way to stay competitive in the jobs market? Should salaries be increased to respond to the needs and demands of employees? Is it a case of introducing more effective, and more valuable, benefits to attract and retain the best talent? Or is it simply a case of maintaining our existing policies?

The truth is, the world of work has experienced a huge shift in recent years, with more power now lying in the hands of employees. Those searching for a new role or exploring their options in 2022 expect the best support, not just the best salary.

This means, ensuring that overall compensation is as attractive as possible, is one of the biggest levers that businesses have in the jobs market. The good news is that financial wellbeing support, and effective support strategies, can help employees make the most out of their salary so they feel more settled and secure.

Keeping staff happy when hands are tied

Perhaps it goes without saying, but it’s not possible for every businesses to provide pay increases for every employee. Especially as the organisation itself may be experiencing financial pressures from changes in NI contributions and rising energy costs. 

However, even if pay rises are impossible in the short term, there are still cost-effective ways in which employers can help their people tackle concerns, deal with their problems, and support them to achieve their goals.

There are now more opportunities than ever for businesses to support employees with their broader financial life, and deliver solutions such as impartial education, effective tools, and professional coaching for every member of staff. 

Only 1 in 10 people in the UK have had the chance to speak to a financial expert. FCA

According to Royal London, providing access to a finance professional for coaching and support can make an employee £47k better off over ten years, simply by understanding their financial life in greater depth, and doing more of the right things at the right time.

That’s the equivalent of nearly a £5k salary increase for the cost of an effective financial wellbeing solution.

 

Does financial wellbeing simply mean higher wages?

So what do you do, if your hands are indeed tied when it comes to funding an increase in pay? Do you just wait for the inevitable exodus of workers who need to deal with the financial pressures they’re under, or is there another way to keep a lid on the situation?

Well the good news is that financial wellbeing isn’t just a number in our pay packet. Because even if we have some degree of financial security, we can still feel stressed, anxious, and confused about our financial life.

Instead, financial wellbeing actually means…

1. Understanding more about our finances so we have greater clarity.

2. Creating a plan with realistic goals so we feel more in control.

3. And making the right decisions to achieve those goals.

Clarity, control, and organisation: That is what financial wellbeing requires. And that can be achieved without necessarily needing to earn a penny more, so long as employees have the right support, available whenever it’s needed.

So, even if your business is unable to support your workforce with higher compensation right now, with the right financial wellbeing solution you can still take care of them, both through this difficult time they’re experiencing right now, and through the coming years.

 

Going beyond the paycheck

Employers believe that the proportion of staff who worry about money every single day is just 2%. However, research has proven that the actual figure for those who are financial stressed on a daily basis is closer to 25%.

88% of employees want help from a financial expert, to validate their decisions, and know what to do. PwC

In many ways this is unsurprising, especially when considering recent statistics from the Office for National Statistics (ONS), which has reported that the increase in the Cost of Living is now the No.1 concern for households across the UK, while various research papers have supported the data with financial health now overtaking mental health as the primary concern for employees.

The question therefore, is not whether financial support should be prioritised, but what form it should take, and how pro-active it should be. And the research is clear: Employees don’t just want more money. They want effective, dedicated support to help them make the most of it.

“There comes a point where we need to stop just pulling people out of the river. We need to go upstream and find out why they’re falling in.”

The impact of absenteeism is often clear and measurable, with the drop in attendance uncovered with relative ease. However, measuring the loss of productivity from presenteeism is much harder.

In fact, some studies have suggested that presenteeism is actually more costly to businesses than absenteeism. At the root of this problem is financial stress, the elephant in the room, causing distraction and dissatisfaction for anyone who is suffering with it.

Getting help to navigate the Cost of Living storm

Along with the likes of HelloFresh and Beam, many companies in the UK and beyond are benefitting from Bippit’s all-in-one professional coaching and financial wellbeing platform.

Want to provide immediate support for you team’s financial health? Book a free Financial Wellbeing Lunch & Learn for your workplace.

 

 

War for talent & The great resignation

Even before COVID-19 and the Cost of Living crisis, the cost of absenteeism and presenteeism to UK workplaces due poor financial wellbeing was estimated to be £1.56bn.

Since 2020, citizens everywhere have been reassessing their life and changing the way in which they view work. There has been a tectonic shift in the job market, and an explosion of new opportunities for workers to switch locations and careers. The net result is that attracting and retaining talent has become harder than ever.

According to Randstad, vacancies in the UK are at the highest level in over 50 years, with 69% of workers ready to move to a new job within just a couple of months. Staff resignations are an unavoidable element of working life, however the current rate of churn is a cause for concern for business leaders across the UK and beyond.

It has been estimated that the cost of replacing an employee is equal to at least six months of their salary, and many experts believe this to be a conservative figure.

This estimated cost of replacing a member of staff may also ignore the time required from existing team members involved in the recruitment, training, and onboarding processes.

The good news is that an effective financial wellbeing strategy can tackle these issues head-on. In research from PwC it was discovered that 76% of financially stressed employees are attracted to businesses that care about their financial wellbeing, and it was found that 1 in 3 employees rate access to an unbiased financial expert is the No.1 benefit they would like to see introduced.

Tensions in the workplace

It is no secret that the relationship between employer and employee has been tested in recent years. The COVID-19 pandemic, remote work policies, the Cost of Living, and now a recession looming on the horizon have all added pressure, and financial wellbeing has taken the brunt of it.

Personal financial issues can impact us physically, emotionally, mentally and socially­. It’s therefore no surprise that employees have said that their financial stress and money worries over the past year have had a major impact on them in the following ways:

Mental health 34%

Sleep 33%

Self-esteem 30%

Physical health 23%

Relationships at home 21%

Productivity at work 18%

Attendance at work 15%

 

Loyalty and retention

When it comes to retaining talent at an organisation, the research is clear, financially stressed employees are 2x more likely to look for a new job.

According to PwC, 38% of employees who are stressed about their finances are actively looking for a new job, compared to just 16% who aren’t stressed about their finances. So tackle financial stress in the workplace, and that’s 22% more of the workforce who are settled in their role.

The best talent expects the best support, and this is especially true for financial wellbeing. So when employees rate their financial concerns as the No.1 reason for stress, recruitment and retention strategies need to take note.

76% of financially stressed employees are attracted to companies that care more about their financial wellbeing. PwC

 

Wellbeing, stress, and productivity

The impact of financial stress can be corrosive for businesses. According to Aegon research, it was estimated that poor financial wellbeing costs UK employers more than £1.5 billion each year through absenteeism and presenteeism alone. Not to mention the cost of employee churn.

In addition, a study from the Dutch National Institute for Budgeting uncovered that financial stress was the direct cause for a drop in productivity of approximately 20%.

These insights are all part of a wider trend of preoccupation at work, and the Cost of Living situation is stretching a lot of employees to the point where their productivity and performance can drop off a cliff.

24% of employees under 25 have experienced mental health problems as a result of money worries. Close Brothers

The impact of absenteeism is often clear and measurable, with the drop in attendance uncovered with relative ease. However, measuring the loss of productivity from presenteeism is much harder.

In fact, some studies have suggested that presenteeism is actually more costly to businesses than absenteeism. At the root of this problem is financial stress, the elephant in the room, causing distraction and dissatisfaction for anyone who is suffering with it.

 

How to tackle these problems?

Since the outbreak of COVID-19 in 2020 and the explosion of remote work, many employers have renewed their focus on mental health, and invested in additional resources. This has included examining the various workplace factors that can affect the health of their employees, such as burnout, disconnection, and exhaustion.

However, money problems have fast become the primary cause of mental health issues, and now have the potential to directly impact an organisation’s bottom line in key areas such as productivity, attendance, and retention.

In PwC’s 2022 Financial Wellness Survey, employees who said that money worries had impacted their mental health were:

6x more likely to struggle with productivity

2x more likely to be looking for a new job

7x more likely to be affected by absenteeism

And among financially-stressed employees, 49% said that there had been a severe or major impact on their mental health from money worries in the past year.

Given this close connection between financial wellness and mental health, there is now a growing number of employers focused on providing holistic financial wellbeing and coaching for their staff, to sit alongside their existing mental health support.

Showing your organisation a better way

Along with the likes of HelloFresh and Beam, many companies in the UK and beyond are benefitting from Bippit’s all-in-one professional coaching and financial wellbeing platform.

Want to provide immediate support for you team’s financial health? Book a free Financial Wellbeing Lunch & Learn for your workplace.