The New Year brings with it new ambitions, goals and resolutions both for your business and also for your individual workers. Despite the financial turmoil, according to YouGov, four in ten Britons have said they want to set a 2023 New Year’s resolution to save more money.

But as the cost of living crisis rages on, many workers will struggle to put money aside as interest rates rise, and we see record levels of inflation, meaning everyday essentials have become more expensive.

Whether it’s financial goals for a big life milestone like a wedding, getting on the property ladder, or simply supporting their family – reaching any money goals in 2023 will feel harder than usual for your employees.

But it shouldn’t feel impossible. We outline how your workplace benefits could help alleviate financial stress and support your staff in their struggle to save money.

Fairer salaries

Naturally, one of the most impactful ways businesses can improve the financial health of their employees in 2023 is to offer fair salaries and increase wages in line with inflation.

A fair salary is also one of the most crucial aspects in terms of employee engagement and retention, so it’s wise for senior leaders and HR to take the time to examine whether their business has a fair wage structure. As business leaders examine their pay structure in light of the financial crisis, aspects such as the gender pay gap, and diversity should be taken into account.

Knowledge sharing and financial literacy

The 2009 recession may have passed many millennials and Gen Z workers by (the majority of your workforce). As younger employees wouldn’t have been of working age during the cost-of-living crises of the late 00s, it’s even more important to educate and share best practice around how to survive and thrive during the turmoil of the economic crisis.

According to the Punter Southall 2020 survey, 49% of employers did not offer financial education, support or wellbeing to employees. That means employers are way behind the curve in terms of offering what the workforce needs from them or even acknowledging the part they must play in their employees’ financial health.

Offering solutions that empower staff to take better care of their finances could have a huge impact on the holistic health of your workforce. By offering financial education provisions, be it in the form of money management apps, financial health checks, workshops, or coaching and mentoring, you could help your staff become more proactive with their money and achieve their financial goals.

Mortgage advice

With such high interest rates, navigating the property market is a minefield, especially for those looking to get on the ladder for the first time. It’s essential that employees feel they have guidance and sound advice when buying a home, especially in the current financial climate. With many different mortgage options and a huge amount of information to take in, the prospect of buying a home can be truly overwhelming.

Providing unbiased advice, offering resources and support, or simply educating employees about the mortgage market could stand businesses in good stead when it comes to making employees feel that their needs are being heard.

ISAs and pension plans

One hugely impactful way to support your employees in reaching their financial goals is to enable them to save directly from their salary payments each month. With many workers struggling to set aside money for their futures right now, it’s a good idea to encourage staff to contribute little and often to longer-term savings pots, such as corporate ISAs or a workplace pension, by automatically paying in small instalments straight from their monthly salary.

Bonuses and discount vouchers

If you haven’t the budget to increase salaries across the board, consider implementing a bonus scheme. Whether you want to incentivise bonuses according to KPIs, or you want to give a share of your profits as an annual end-of-year reward for your team, offering a bonus scheme can support your staff in reaching their financial goals and boosts engagement and staff retention.

Likewise, finding ways to reward staff by saving them money is also a great way to help them put money aside for their future. Discount vouchers for supermarket chains, eyecare, gym memberships and household brands could help your staff to tighten the purse strings in these tough times.

Fuelling financial health in 2023

Empowering your staff to think about their finances, talk openly about their money goals, and learn about better financial hygiene could be the most powerful reward you could give your team this year. Offering benefits that hone better practices for financial health will also improve your staff retention, as financial stress can have a detrimental effect on the mental health of your staff.  Likewise, offering effective financial support, and benefits that help staff to reach life’s big financial milestones could also help your business attract new talent as your business grows.

With more personalised benefits, employees feel valued and empowered to make smarter savings and invest in their future. Take a look at our flexible benefits, offering the people’s choice for more information on how to tailor your workplace perks and offer better financial support for every individual.