Could financial advice be a useful work perk for your employees?

In today’s world, you may be concerned about your employees’ overall wellbeing.

After all, the Covid-19 pandemic has made a lasting imprint on both the financial and mental state of individuals up and down the country. Although we are emerging from the peak of the pandemic, the “new normal” isn’t going anywhere.

As a result of this shift, many employees are now demanding higher standards than before the pandemic, regarding both financial remuneration and work-life balance.

Indeed, the prolonged lockdowns of 2020 and 2021 provoked what is widely referred to as “the great resignation”. According to Statista, in the first quarter of 2022 alone, there were around 354,000 resignations in the UK – one of the highest quarterly figures on record.

In light of the changing demands of the modern workplace, you might be searching for ways to keep existing staff, and attract new team members too.

One unmissable factor you should consider when hiring and retaining talent is workplace perks. Perks can come in all shapes and sizes, with some of the most common being:

• The opportunity to work from home or in a hybrid model
• A company car
• Employer pension contributions
• Private healthcare, including mental health services
• Fitness perks, such as a cycle-to-work scheme or a gym membership.

One perk you may not have considered, however, is financial advice.

Read on to find out how offering financial advice as a workplace perk could benefit both you and your team, as we emerge from the pandemic and meet new challenges head-on.

1 in 5 people feel their employer isn’t doing enough to support their financial wellbeing

Although your employees may feel pastorally supported at work, they might not feel confident about their financial prosperity – and you might have something to do with it.

Indeed, according to the Chartered Institute of Personal Development (CIPD), 1 in 5 people say their employer isn’t doing enough to support their financial wellbeing.

Many of the issues covered in the CIPD study come down to salaries being too low. For example, the research found that 27% of participants said their salary isn’t enough to cope with a £300 emergency without dipping into savings. Similarly, 19% said they have lost sleep worrying about money.

Salary aside, another factor at play is that of financial savviness.

Accepting advice as a workplace perk could empower your employees to take control of their wealth. Plus, having a deeper understanding of their own financial situation could enable them to make informed financial decisions, such as setting long-term investment goals, or paying regularly into their pension pot.

By offering advice as a perk, you would be actively contributing to your team’s financial wellbeing – not just by paying their salary, but by giving them the toolkit they need to make it last.

You could help your employees achieve their dreams more easily

As costs have begun to rise, more and more individuals have become reluctant to pay for advice – even if it could help save them thousands in the future.

Indeed, a report from Money Marketing claims that in 2021, only 1 in 14 people paid for financial advice, compared to 1 in 10 in 2020.

So, your employees, especially those of a younger generation, may not consider investing in financial advice on their own. It could be that they don’t see the value of seeking expert guidance, or it could be that they want to work with a financial planner, but simply can’t afford to do so privately.

Nevertheless, the same employees are likely to have goals that are important to them, including:

• Buying their first home
• Getting married
• Starting a family
• Saving towards retirement
• Travelling the world
• Supporting children and other loved ones.

By offering financial advice as a workplace perk, you could help your team make the most of their wealth in time for these key milestones, not after them.

If they feel lost in life, a financial planner could help them set specific goals, such as the age they want to retire, and offer guidance on how to reach them.

Plus, from your point of view, helping employees see the value of advice could incentivise them to remain in their role, rather than looking elsewhere.

Financial advice could be a popular perk during the cost of living crisis

As you will already be aware, the cost of living crisis is placing a strain on many households around the UK.

Inflation reached 10.1% in the year to July according to the Office for National Statistics (ONS), reflecting a surge in prices that could leave both you and your employees feeling concerned about the future.

By including financial advice in your employees’ remuneration packages, you could be adding immense value to their lives, particularly in the current economic climate.

Employees could feel more confident when investing towards their future in a time of economic volatility, and as a result, may lose less sleep over their financial circumstances than before.

Get in touch

Connecting us with your team could provide invaluable peace of mind for everyone involved. To speak with a financial planner about offering advice as a perk, email enquiries@prosserknowles.co.uk or call 01562 829 222.

Please note

This article is no substitute for financial advice and should not be treated as such. To determine the best course of action for your individual circumstances, please contact us.

The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.