Supporting employees with lockdown savings

The past year has been challenging in so many ways, especially financially. Unfortunately, there has been job losses, people put on furlough and pay cuts. But amongst all of the financial detriment, there were some positives.

When the hospitality and retail sector were forced to close their doors, this cut many households spending. Although not sustainable for the economy, it did give people a chance to look at their financial behaviours and save the money they would usually be spending.

However, as we finally start to get back to some kind of normality, people will of course resume with dinners out, socialising with friends, or that much needed holiday. All of course well needed after the year we have had, but how can people make sure they keep up with the good financial habits they may have developed over lockdown?

Here’s a few ideas on how you could support your employees to continue saving:

Emergency fund

Before employees go and spend any money they have managed to put away, encourage them to keep some as an emergency fund.  As a general rule of thumb, the minimum someone should have is about three months expenditure. This is for any unexpected costs, such as if their car was to need repairs or their boiler broke. Having this money set aside reduces the chance of them getting into debt.

Keep up with saving

No one could have predicted such an unprecedented year and therefore we cannot rule out anything happening like this again in the future. Reminding employees of the importance of saving for big, life changing events will better prepare them for whatever their future holds.

Take the habits from home back to work

For those who weren’t able to work during lockdown or had to work from home, their daily habits and routine changed significantly. There were no lunches out or commuting coffees, so why not encourage employees to continue this back at work. Bringing in their own coffee or packed lunch might be a small saving but they will soon add up over a few months.

Promote payroll deducted savings

It can be hard for some people to save once they can see their earnings in their bank account, so offering payroll deducted savings means employees don’t even have to think about it. This simple and effective solution can often help many employees get into good financial habits.

 

By encouraging some or all of these suggestions, you can help reduce employee stress, create positive mindsets and ultimately reduce absenteeism caused by financial issues.

If you would like to know more about how to support your employees financially, mentally and physically, as life starts to return to normal, download our free ebook ‘Building employees’ resilience post pandemic’. You can also contact us for any further information.

Secondsight is a trading name of Foster Denovo Limited, which is authorised and regulated by the Financial Conduct Authority.

Information correct as of 06/08/2021