Employer and employee challenges
For a long time now, the UK manufacturing sector has faced talent shortages, and this doesn’t look like changing anytime soon. At the same time, many employees today are now facing financial challenges as a result of the cost-of-living crisis.
So, with talent retention more important than ever before, the onus is well and truly on manufacturers to help their workforce.
And while salary increases to keep up with inflation should be a key consideration where possible (however, given current energy prices this could be difficult for many businesses), offering a comprehensive mix of valuable, relevant employee benefits can go a long way in helping employees to improve their financial wellbeing through both immediate support and long-term peace of mind.
Neil Fallon, COO at Eppione has outlined some of the top benefits for manufacturers to consider to support their workforce’s financial wellbeing.
1. Retirement planning
Supporting employees to plan and prepare for the future can be a great way to provide financial peace of mind and increase employee loyalty. According to research cited in Investment Week, 25% of the UK workforce are forfeiting their pension contributions as they look to boost their monthly paycheque.
Where possible, businesses might consider increasing the company’s level of contribution, enabling employees to reduce their own payments while maintaining their pension. Increasing the company contribution above the statutory 3% could be a huge differentiator when attracting new recruits, while helping to retain employees and improve their financial wellbeing in both the short- and long-term.
In addition to offering the right plan and contribution levels, providing access to educational and advisory services to help employees understand and manage their pension plan can be hugely valuable. The options range from online educational resources to one-to-one advice from a qualified pensions adviser to help employees become more comfortable with their retirement planning objectives and plan for the future.
2. Health & wellbeing benefits
With the NHS under significant strain, resulting in long waiting times for treatment, providing comprehensive health benefits – such as health insurance and health cash plans – can support employees to access the care they need, when they need it.
But health benefits can also help improve employees’ financial wellbeing. For those employees currently funding, or considering taking out, their own health insurance policy, funding a company plan as an employee benefit can save the workforce hundreds – if not thousands – a year.
3. Life & sickness protection
Financial wellbeing isn’t just about providing support in the short-term – offering protection for employees and their families in the event of sickness or death can provide peace of mind that they and their loved ones will be financially supported should the worst happen.
Income protection and critical illness cover are hugely valuable benefits to offer the workforce. Not only can they be costly to fund privately, but they provide a welcome reassurance that employees won’t be left desolate if they become seriously ill and unable to work.
Likewise, providing life cover as an employee benefit can reassure employees – particularly those with families – that loved ones will be cared for financially if they were to pass away. However, it’s important to acknowledge that life cover may not be a priority for all employees (depending on circumstances), so offering flexibility in levels of cover can help meet everyone’s needs more closely.
4. Budget support
If businesses are looking to provide more immediate support for their employees’ finances, there are a few benefits manufacturers can offer to ease the strain on their wallets. These include:
– discount schemes (on items such as retail and hospitality)
– free or subsidised meals and travel
– financial education and wellbeing workshops
5. Salary sacrifice schemes
If a business is working with a limited budget for employee benefits, giving the workforce access to salary sacrifice schemes can help them save money through reduced tax payments, without costing the business.
Since companies can offer these at little or no cost to the business, businesses may wish to offer a wide range of salary sacrifice options for their employees to choose from. If businesses do opt for a wide range, it might be worth exploring what tech solutions are available to help communicate and manage those benefits alongside core benefits, such as Eppione’s Employee Benefits platform.
The right balance
So, with the UK manufacturing skills shortage showing no signs of resolving itself anytime soon, employee retention is more important than ever before. And while higher salaries will be hoped for by employees, employers can also use carefully selected flexible employee benefits to help their workforce during this current challenging economic climate.
Contact
Neil Fallon, COO at Eppione
Tel: +44 203 813 3277