A fifth (20%) of employees choose not to think about their finances, while 73% have felt more anxious about their finances since the cost of living crisis began, research by pension provider Aviva revealed yesterday (3 September).
Aviva’s survey of 1,011 UK employees suggested that employers underestimate employees’ concerns, as a lower proportion (56%) of employers reported that they thought their employees were worried about financial wellbeing.
Meanwhile, leaders of the retailer Asda announced yesterday (3 September) that they had introduced a workplace savings account for employees. This is due to allow employees to either set a fixed amount to be saved from their salary or to round up shift payments to the nearest pound, with the difference deposited.
On 4 September, leaders of the banking platform Griffin announced an integration with payroll software company Income Group. This allowed Income Group users to access a savings account through their payroll platform.
Phoebe Wallis, Griffin’s client solutions director, explained that this came as a result of increased demand for accessible savings solutions.
“Recently, we have seen an uptick in requests for embedded savings accounts from payroll apps,” she told HR magazine.
“These apps are already in the employee experience and are a great way to conveniently introduce savings to help employees improve their financial health.”
Read more: Inadequate pension saving soars
Savings account benefits could be an effective way for employers to support employees’ financial wellbeing, commented Claire Williams, chief people officer at HR and payroll software Ciphr.
Speaking to HR magazine, she said: “Employers have a vested interest in their employees’ financial wellness. Savings account benefits provide a valuable opportunity to actively support this, and demonstrate a genuine commitment to their workforce.
"They offer a convenient way for employees to regularly set money aside for important milestones, such as a rainy-day fund, a holiday, or even a deposit towards their first home.
“This type of benefit encourages good financial habits, which can enhance employee wellbeing and financial stability by helping to reduce the stress and anxiety associated with financial insecurity. This in turn can lead to lower staff turnover and absenteeism.”
More than a third (38%) of people thought they were not on track with saving for a "minimum retirement lifestyle", according to research from the pensions provider Scottish Windows, published in July.
Read more: How to motivate mid-life employees to save for retirement
Employers should ensure that savings accounts benefits meet the needs of their employees before introducing them, according to Emily Trant, chief impact officer at financial wellbeing platform for frontline workers, Wagestream.
Separate research by Wagestream (13 May) found that 74% of people had not spoken to their employer about their financial concerns.
Speaking to HR magazine, Trant said: “The benefits of offering workplace savings are clear, but as with any financial wellbeing support, organisations should first take stock and listen to the needs of their people before introducing a new benefit.
“While we know from our own research that savings support is high on the employee agenda, this should be put in place as part of a holistic offering which focuses on financial flexibility, visibility and control."
Williams warned that employers should be mindful of appearing paternalistic. She continued: “Some employees may view this benefit as a form of paternalism, so be considerate of this in your communications.
“There may also be some administrative burden on companies, particularly for small businesses. Nevertheless, the overall positive impact on employees' financial health suggests that the benefits outweigh the drawbacks, making it a valuable initiative for more employers to consider."
