Help Your Employees Manage Their Financial Well-Being
The pandemic destabilised companies’ finances the world over and with it, employees’ financial well-being. According to the International Labour Organization (ILO), Swiss employees’ income dropped 3.7%. This is mainly due to furlough, which removed the base of their financial well-being: peace of mind and security, including job security. Give your employees their confidence back by asking yourself the right questions and implementing support systems that meet their current needs.
Is Your Compensation System Fair?
The Covid-19 pandemic exacerbated the professional inequalities that already existed. In Switzerland, the studies conducted by the ILO show that salaries for women dropped 6%, compared to 3% for men. Beyond the significant decrease in salary for all, this disparity is not conducive to a rebound in consumption for employees at the lowest income level. It is therefore essential to study your salary system in depth and hunt down inequalities between genders and positions. If you maintain an unfair compensation system, you only increase the financial insecurity caused by the pandemic and further plunge your employees into turmoil. It is high time to remove unjustified salary differences in order to improve your employees’ financial health.
Have You Invested in a Benefits Platform?
Employers often minimise the impact that additional rewards can have on base salary. Yet, employees themselves say that benefits make a difference in their level of engagement. They even make your employees more loyal to the company. Now that you know how powerful they can be, offer permanent discounts at major brands every day, tax-free rewards or meal subsidies to cover a portion of restaurant costs. These benefits, offered by Swibeco, mean that you can meet your employees’ needs and contribute to their financial resilience by immediately increasing their purchasing power.
Are Your Benefits Flexible?
Although employees are generally fond of in-kind benefits, they also enjoy personalised rewards. Each employee doesn’t necessarily have the same expectations for benefits, so it is a good idea to offer à la carte options. Some will prefer a new phone, others a new wardrobe or a stay in a romantic hotel. Choose a system that can be completely adjusted to each employee’s individual situation and preferences. With Swibeco’s digitised point system, giving personalised gifts is child’s play.
Do You Communicate Effectively on Total Compensation?
Employers well know that most employees are not aware of all the benefits they have. You can change that by providing them with a detailed description of compensation, including retirement benefits, health insurance and complementary benefits. That way, they can have a clearer idea of what they really earn. Be sure to communicate on the benefits that are available to them regularly to improve their financial well-being. We recommend using a variety of channels of communication, from individual meetings to descriptive emails to information sessions on retirement benefits or employee profit sharing at the company, you are sure to get everyone’s attention, no matter their age.
Do You Provide Education on Financial Management?
Managing your budget and making your savings grow is not innate for everyone. According to a study conducted by AMP in 2019, money problems are a major source of stress that leads to recurrent absenteeism, significantly diminishes income and leads to loss of productivity at the company… a viscous cycle where everyone loses. Luckily, employers can fight this potential source of stress by offering financial advising with professionals or courses on financial management, saving for retirement or investing. Providing financial education is definitely one of the best ways to help your employees manage their budgets in order to have more money available for the future. In summary, cultivate a company culture where talking about finance with your employer isn’t taboo.