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