Half of employers don’t have a financial wellbeing policy, despite financial impact of COVID-19
The CIPD calls on all employers to recognise both the moral and business case for taking more responsibility for their employees’ financial wellbeing
- 12% of employers have introduced, or plan to introduce, a financial wellbeing policy in direct response to the pandemic (29% already had one)
- 19% are planning or considering becoming an accredited Living Wage Foundation employer (a further 18% of employers are already accredited and another 18% already pay the ‘Real Living Wage’ without being accredited)
- 24% of employers have explored how the pandemic has impacted their employees’ financial wellbeing, so they’re better able to identify the right kind of support. Another 18% plan to do so by the end of March 2021
- Nearly a third (30%) of employers say the pandemic and the economic crisis has prompted them to consider how fair their pay and benefits are. A quarter (25%) are taking corrective action or plan to do so.
- 27% said that senior management see the need for a financial wellbeing policy, but don’t have the time, money or expertise to create it
- 21% said they weren’t sure employees would want such a policy (this decreases to 11% for those who’ve asked their employees what impact the pandemic has had on their financial wellbeing)
- 20% aren’t sure it would contribute to employees’ wellbeing
- 19% don’t trust a policy would improve their organisation’s performance.
- A quarter of employers (25%) will have revised how much they have spent on employee pay (both fixed and variable) by March 2021. Of these, 50% will reduce pay and 25% will increase it.
- Only 7% of organisations are changing pay to reflect home working or have plans to do so. A quarter do not intend to do so, while 16% are keeping the issue under review.
- A quarter (26%) of organisations intend to change the amount spent on employee benefits this year. Of these, 44% are increasing spend and 40% are decreasing spend.
- A fifth of organisations (19%) are making changes to their reward practices in response to the Black Lives Matters protests that took place last summer. Those that are taking action are concentrated in the public and voluntary sectors.
- Signposting to financial wellbeing advice, such as the resources available from the Money and Pensions Service (which small employers can do easily).
- Targeted financial education support at key moments in working lives, for example ahead of maternity leave
- Revising benefits packages to include finance-friendly initiatives, like giving employees the option to choose how often they’re paid
- Implementing flexible working policies so employees with caring responsibilities can balance working enough hours to comfortably pay their bills
- Giving people security over their hours and helping them to progress into higher-paid roles
- Committing, where possible, to paying all employees at least the Real Living Wage.
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