Why the financial resilience of your staff is more important than ever
The outbreak has turned the working world upside down. Things may never return to what we might call ‘normal’.
What this presents for organisations around the world is a new challenge when trying to engage with their staff.
Without traditional forms of communication and engagement, employers need to find new ways to build and keep that connection.
One of the key ways in which employers can seek to do this is by improving the financial resilience of their staff, something that’s now more important than ever.
Financial resilience is more important than ever
More than half of UK consumers started 2020 carrying debt.
UK households predicted to see a £45 billion fall in cash available for essential spending due to the outbreak.
This means that the economic downturn is set to have a significant effect on the financial resilience of staff.
And financial worries are having a real impact on your employees when they’re at work. Even if they may not be at work in the traditional sense for the moment.
A PWC survey found that 48% say that their financial worries are a distraction at work. What’s more, 54% say that financial worries are the biggest stress factor in their lives.
What the new working world demands, and therefore how HR strategies should be framed, is a whole new approach to how employers support their staff’s financial lives.
A powerful way in which employers can do this is by looking at the way staff get paid.
It’s something that hasn’t changed for decades. The majority of workers across the world are paid monthly, leaving many financially exposed.
The feast and famine effect of the monthly pay cycle means that 43% of disposable income is spent in the first 24 hours after payday.
3.1 million people in the UK turn to payday lenders every year as a result.
Disrupting the negative financial cycle
Employers are in the best position to disrupt the negative financial cycle.
By disrupting this cycle they can expect to strengthen their relationship with staff. This is going to be crucial as we move through recovery.
The pay cycle is an area that’s ripe for innovation. It’s also an are that could return real value for employers in terms of a loyalty and engagement dividend.
Employers looking to disrupt this cycle need to look at technology solutions that sit between them and their staff to provide the right tools and education to help them build financial resilience.
There’s set to be a whole new different set of demands for employers when it comes to reward and benefits strategies.
Employers looking to effectively answer these demands and future proof their workforce need to start making changes now.
There is no better way of doing this than by building financial resilience for workers globally.
To understand how you can best support the financial resilience of your staff, get in touch.