Savings are a key part of improving your financial health, whether that involves building an emergency fund or saving for your long-term financial goals. If you notice that employees struggle to save money, now could be a great time to offer them support and guidance, which they can use to grow their savings more quickly. Experiencing financial challenges can lead to decreased productivity and motivation, so it’s important to take action as an employer and explore different options and schemes. Today we will share some of our best tips on helping your employees save money and deal with financial hardship in a more effective way.
Help Them Set Goals
Firstly, it can be a good idea to support your employees in setting realistic goals for their future so that they can make the most of their savings. This can make a significant difference in your employees’ lives and the way they think about money. For example, you may encourage them to think about what is important to them and how they can set aside a realistic amount every month. They may consider making deposits, which are taken directly from their salaries, to make saving a habit. Moreover, you could signpost them to external services and budgeting tools that they could use for extra support.
Look Into Salary Sacrifice Schemes
There are various salary sacrifice schemes, that you may want to learn more about. For example, LV ElectriX provides an attractive electric car salary sacrifice scheme designed to help employees and employers. Be sure to research how salary sacrifice works to better understand your options. Thanks to LV ElectriX, your employees will have access to all-inclusive electric car options with no upfront costs, which will result in considerable savings. This way, you will support them in making a switch to an electric vehicle in an affordable way. At the same time, electric car salary sacrifice schemes can help you embrace sustainability.
Offering discounts can be another great way to help employees save some money on their weekly food shopping trip or other products and services they use on a regular basis. Make sure you offer discounts on the types of things that matter most to employees. It can be a good idea to provide employees with discounted cinema tickets or gym memberships. This will support them in making regular contributions to their savings accounts, no matter how small or big they may be. It’s also important to make employee discounts easy and simple to use.
Provide Financial Resources
Financial education is another crucial part of supporting your employees in achieving their goals. It can be helpful to educate them on financial wellbeing and provide them with the right resources to make more informed decisions in the future. This means that you should offer them support on all levels, such as in different situations, including wedding planning, travel money, childcare, and others. For example, it can be beneficial to arrange for them to speak to financial experts, if necessary so that they can get one-on-one support. As a result, you will have the chance to demonstrate your company’s commitment to financial wellbeing.
Support Them In Paying Off Debt
Paying off a debt can be challenging and stressful for many people, so it’s essential to show employees that you are there to support them step by step. Since this can be a major financial concern, it’s crucial to be understanding and considerate of your employees’ needs. If possible, you may consider organising workshops and seminars designed to educate employees on debt management. As a result, this can help them find resources and help that is available to them in these situations. Also, you may want to offer loan consolidation through payroll to support them further.
Encourage Them To Bring Their Own Lunch To Work
Many employees tend to buy lunch at work, which means that they are more likely to spend more money, making it difficult to save. However, bringing their own lunch to work can help employees save money and eat a more healthy diet at the same time. Remember that as a business leader, it’s important to lead by example, so it can be a good idea to bring your lunch to work as often as possible. It can be even better if you set aside time each day, during which employees can get together and have lunch in the office.
Develop A Strong Retirement Plan
Lastly, building a strong retirement fund is key if you want to ensure financial comfort down the road. This means that you should think about how you can support employees in growing their retirement savings. For example, it can be beneficial to introduce a program which includes matching contributions made by employees. This will also motivate employees to think about their retirement funds and make regular savings. Consider hosting a presentation or workshop explaining the benefits of developing a strong retirement plan and sticking to it.