With over two million people in the UK taking out high cost loans each year and the average individual debt hitting £8,000, stress and anxiety arising from financial worries is also on the rise.
This guide, aimed at all people managers in every employment sector, aims to dispel the myth that financial wellbeing is an issue just for lower paid staff. Life events such as divorce/separation, bereavement, illness, job loss, sudden financial loss or expenditure, gambling and other forms of addiction can affect anyone.
In London, where the cost of living is now ranked the second highest in the world, this is problem that faces many people trying to progress in their personal lives.
Hackney Borough Council
The HR Team at Hackney Borough Council recognised that employees had received below inflation pay rises for the past few years and were under constant pressure to finance their personal lives. In response, Hackney decided to be the first local authority to launch salary-linked employee loans in December 2016. In its first year the solution, provided by Salary Finance, has truly changed people’s lives.
Over 100 employees are currently benefiting from the offering and saving close to £110,000 in interest costs. In addition, the solution provides necessary and important financial education as well as tools that help them to start saving.
North Somerset Council
In May 2017, North Somerset Council added a new suite of financial wellbeing products to its employee benefits package. Provided by Salary Finance, the payroll-administered loan, education and savings benefits are encouraging staff to manage their finances better, thereby reducing stress associated with money worries.
At no risk or cost to the council, the Salary Finance benefits were quickly introduced and have already delivered an average saving of £1,029 for those who have taken advantage of them.