Financial Perks – What’s the Big Deal?
The cost of living in the UK remains a thorn in pretty much everyone’s side and things are not looking any brighter for 2025. In fact, financial support charity StepChange reported that 40% of workers are living paycheck to paycheck and almost 3 million people in full-time work in the UK are dealing with problem debt (unable to afford debt repayments). That means that staff are slipping further into financial trouble when unexpected bills arise.
With the current rate of inflation hovering around 6.5%, the cost of food and energy prices is gradually being pushed up. This financial strain can have a knock-on effect on people’s motivation, productivity and morale, impacting mental and physical health.
Any assistance employers can give their people to help mitigate these rising costs is going to help. Here are some of the tools at HR’s disposal.
Employee Benefits Platforms
It might sound obvious but putting a simple employee benefits platform in place can help people stretch their paypacket and take away some of the stress. They can provide a lifeline during challenging financial times. By offering perks such as tax-free benefits which include salary sacrifice schemes for electric vehicles, new technology, or childcare vouchers, employees can lower their taxable income and save money on essential expenses. These benefits are a win-win, as they improve staff satisfaction while helping employers attract and retain their best workers.
On-Demand Pay
Having financial flexibility when it is needed can be the difference between debt and managing your finances. When employees are hit with unexpected costs like car troubles; childcare issues, or life events such as sudden illness, house moves or divorce, it can be hard to know where to turn and financial chaos is the result. On-Demand Pay can be a solution. This allows staff to access a portion of their earned wages before payday, helping them avoid costly overdrafts or exorbitant payday loans. This can reduce worries, providing a financial cushion to help them ride out the money crisis, and remain productive at work.
Tax-Free Benefits
An enduringly popular perk, and for good reason – salary sacrifice benefits for employees offer lower taxable income, putting more money back into people’s pockets when they need it most. They provide the chance to own items employees might ordinarily not be able to afford such as eclectic vehicle leasing, car salary sacrifice schemes, and pension contributions. Tax-free benefits like these empower workers to save and make smarter financial decisions when it comes to making lifestyle choices.
Exclusive Discounts
From groceries to entertainment, having access to hundreds of exclusive discounts is another way to make salaries go further. When an employee actively uses a savings platform, they get access to savings on everyday expenses, from groceries and utilities to leisure activities and travel. Employers can do more as well. By partnering with providers that offer exclusive discounts, and encouraging their people to use the Platform, over time, the savings can make a noticeable difference in reducing the financial strain people are under.
Simple solutions don’t have to cost the earth but go a long way in supporting people’s financial wellbeing while also helping to build a more resilient, productive and engaged workforce.
If you would like to learn more about the financial benefits that My Staff Shop offers, fill in the contact form, and one of the team will be in touch to discuss how we can work together.
