Employee retention strategies – Why financial resilience is the answer
Not having effective employee retention strategies is costing businesses more than they might first think.
The average staff attrition rate for businesses in the UK is at 15%. An Oxford Economics report estimates the average cost of recruiting, hiring and training a member of staff to be £25,181.
It’s a figure that may appear high. But when broken down by recruitment fees, training and reaching full capacity it’s clear to see how employee churn is so expensive.
With employee churn contributing so to bottom lines, it’s no wonder that many employers are already waking up to it.
Financial worries cause the most stress
A recent survey by PWC found that almost 50% said financial worries caused them the most stress in their lives. 48% said that their financial worries affected them at work. Financial worries may not be the only contributing factor to turnover issues. It can’t be denied, however, that supporting your staff’s financial wellbeing will strengthen loyalty. When staff start to feel the benefits, they’re less likely to leave for another employer.
Financial resilience in action
Some businesses are already seeing an increase in retention by focussing on the financial resilience of their staff with Wagestream.
A well known restaurant group have seen their attrition reduced by 16%. That’s saving them a staggering £4.5 million in just recruitment fees alone. The Group saw a 44% uptake of the benefit in just 60 days.
Laura Burn HR Director of Roadchef, who recently rolled out Wagestream, said:
“It’s early days for us but our take up has been great. I’ve already seen an improvement in retention and we hope to see that grow. I think there’s just a buzz around it at our sites and employee’s are more engaged.”
Tim Painter HR Director for Stonegate Pubs, said:
“Getting early access to money you have already earned, that is to all intents and purposes yours, seems so simple but this is a real revolution in pay that is already making it easier to recruit and retain staff.”
Building financial resilience into your employee retention strategies
We want to make it as easy as possible for you to build effective employee retention strategies that work. We’ve we pulled together a checklist of measures that your programme should meet.
Must be available to 100% of staff
5.8 million people in the UK that are financially excluded from affordable credit options. They are often the ones that need it the most. By offering a universally inclusive financial wellbeing program, you can help to break the negative credit cycle of financial exclusion.
Must be available and accessible every day of the month
We know that payday lenders target the most vulnerable in the final days of the month. A financial wellbeing program must be available to every day of the month to prevent the use of short-term credit.
Must include independent financial education
Empowering employees to make the right decisions when it comes to their money can only be done through independent financial education.
Doesn’t increase employee debt in any form
Encouraging debt shouldn’t be a part of a financial wellbeing strategy that is committed to improving the lives of employees. Loaning money won’t change behaviours or reduce financial stress, but more financial visibility and stability will do.
Must promote good saving habits
How we feel about our money depends on the choices we make every day. Making the right decisions and building good savings habits is the best way to help them reduce financial stress.
Financial Resilience with Wagestream
Income streaming gives employees the power to access and track their earned wages as and when they need it. Users can automatically stream wages direct into their savings account and learn independent money management tips. It’s available to 100% of staff, 100% of the time so your staff never become financially excluded.
To find out more about how we’re encouraging employee savings at every opportunity click here.
In return you get a workforce that trusts you as an employer, stays loyal for longer and are more focussed on the job at hand.
Wagestream can give you a business advantage, while at the same time, improving the lives of your employees.
Wagestream has no impact on payroll or cashflow, and integrates with all workforce management and attendance systems.
To find out more about why the financial resilience of your staff is more important than ever, click here.
Get in touch and launch Wagestream in under 4 weeks.