Five reasons to be (more) cheerful when it comes to employee benefits21.06.22
Maximising your benefits toolkit can help employees make better choices
We know how tough everyone has it at the moment and as employers, you want to help, right? It’s not easy to watch employees struggle as the cost of living escalates faster than wage growth (yes, 14% faster than wages in fact).
Of course, we can’t wave a magic wand but what we can do is harness the power of employee benefits to enable your workforce to access savings which can really make a difference at a time when every penny counts.
Here are some of the ways to relieve some of the cost-of-living pressures:
1. Fuel to go
This year the UK has seen fuel costs rise at the fastest rate in 30 years and the price of filling the average 55-litre family car with petrol hit £89.80 in March. With little evidence to show any impending slowdown, using employee discounts to make savings on this crippling cost is a no-brainer. The average Brit spends around £100 per month on petrol but by paying for their fuel using an employee discount, they could save 2p per litre which adds up to nine litres of free petrol a year.
2. Supermarket sweep
The rise in grocery prices will mean a large proportion of a monthly salary will be spent on food bills. Currently, the average household spends around £215 a year but by switching their spending to a discount and cashback platform, a Sainsbury’s shop, for example, would decrease by £250 a year. That makes real economic sense!
3. Tax and tech
We know that salary sacrifice in exchange for non-cash benefits provides a helpful way for employees to navigate rising tax costs while still being able to buy the things they want. This can be used for things like company cars, tech, pensions, training and travel but there are other things that can be maximised. For example, the new NI rates mean savings on benefits with technology retailers have increased by 1.25% but using something like Techscheme can save employees money on a huge range of products from Currys PC World. This can add up to savings of up to 13.25% on the cost of the latest tech.
4. Conquering debt
Debts are a very real issue for your employees as they face escalating living costs but being able to give them more control over their money is one way of helping. Payroll lending offers employers a low-cost, risk-free way to do this and alleviates some of the pressure, allowing time for people to re-examine their expenditures and get a handle on their finances.
5. Building financial resilience
We have all had to consider our spending habits a great deal more since the pandemic, and this has highlighted the importance of financial resilience. Benefex meta-analysis of 126 impact evaluation studies found that financial education significantly impacts financial behaviour and encourages a healthy relationship with money. By increasing our awareness of financial matters, altering our shopping habits and seeking savvy ways to save, we can all benefit and build the financial resilience we need to see us through the current cost-of-living crisis.
Download our Cost-of-Living Report for more details on how your Benefits Toolkit can help employees better manage their finances.