The Role of Employee Benefits in Financial Wellbeing

With living costs rising seemingly continuously, many employees are facing a very real financial stress, which can take a toll on their health – and their productivity at work.

One of the ways employers can help is by implementing comprehensive benefits programmes. These play a significant role in enhancing financial resilience and increasing overall employee satisfaction.

The Financial Wellbeing Landscape

Research shows that financial wellbeing is a critical factor in employee happiness, productivity, and engagement. However, many employees – across all pay bands – are struggling with financial pressures that affect their daily lives and work performance.

The scale of financial stress is enormous – and often hidden. Indications show that nearly 40% of UK workers experience sleepless nights due to financial concerns, leading to increased anxiety and, only naturally, decreased productivity. hrnews.co.uk Yet, it is also hidden because people don’t want to share their problems with others.

Cost-of-living increases are one of the many issues. With inflation impacting essentials such as housing, utilities and food, many employees are finding it harder to make ends meet. Very worryingly, a survey by the Trades Union Congress (TUC) revealed that one in six UK workers are skipping meals due to financial difficulties.  theguardian.com

There is an urgent need for employers to step in with solutions that create more financial stability for individuals. Especially when some benefits can be offered at no cost to the employer.

And while employers may recognise that there is a growing concern around financial wellbeing, there’s a danger that employers may underestimate the extent of the problem their workforce is facing. It’s useful to offer employees practical, accessible benefits that help manage their financial situations more effectively.

The potential impact on business performance is profound. Financial distress can have significant implications on how employees show up (or don’t show up) at work. And not surprisingly, employees facing financial stress are more likely to look for a new role, impacting retention. Or they may take on an additional role to increase their take home pay, leading to reduced productivity.

The Role of Employee Benefits in Financial Wellbeing

Well thought-through employee benefits are a useful tool in addressing financial wellbeing concerns. Beyond salary, many benefits can provide employees with financial security, access to essential resources, and peace of mind. Employers can support their workforce by offering a range of benefits, including:

• Salary Sacrifice Schemes: These allow employees to access essential products and services at a lower cost by deducting payments before tax, making high value items more affordable.
• Pension Contributions: Helping employees plan for the future reduces long-term financial stress.
• Insurance and Protection Plans: Providing health insurance, income protection, and critical illness cover ensures employees feel financially safeguarded against unexpected events.
• Access to Financial Education: Workshops and online tools can empower employees with budgeting, saving, and debt management strategies.

Tusker’s Car Benefit Scheme: A Strategic Solution

One of the most highly sought after salary sacrifice benefits is Tusker’s Electric Vehicle Scheme. For a fixed monthly cost, employees can drive a new, fully maintained car, providing multiple advantages:

• Cost savings: Employees can benefit from tax and National Insurance savings, making vehicle access more affordable.
• Inclusive access: The scheme is designed to be inclusive, extending benefits to a wide range of employees across different pay grades.
• Comprehensive coverage: The fixed monthly amount includes insurance, maintenance, and breakdown cover, reducing unexpected expenses and simplifies budgeting.

Real-People Impact

Employees make it clear good benefits bring clear peace of mind. Employees know, every month, exactly what cost they will be paying for their electric car, with no surprises. They also don’t have the high front-end costs of getting an EV which they would if they financed one in other ways.

As the scheme is available for almost everyone (provided they earn of National Minimum Wage after deductions), the car scheme can have a positive impact on the finances of people at the majority of pay bands.

Organisations implementing Tusker’s scheme see notable benefits for their employees, singling out financial wellbeing as a reason to offer the scheme:

• Epson reported that 84% of their employees have renewed into a new Tusker car, following their first, showing a strong retention of staff and this key benefit.
• Utility Warehouse found that the scheme not only supported their sustainability goals but also addressed employees’ financial concerns by offering a cost-effective vehicle solution.