Only half of employers have a financial wellbeing policy in place

(2 minutes to read)

CIPD: ‘The pandemic has, unfortunately, hit many people’s finances hard, with many losing their jobs and others seeing their income fall’.

A new survey has revealed that worryingly, with the pandemic causing financial hardship for so many, 49% of employers do not have a financial wellbeing policy for their staff.

A financial wellbeing policy could be as simple as offering access to low-interest loans, running pension workshops or a commitment to signposting to independent money and debt guidance.

However, the CIPD’s latest Reward Management Survey did show that some employers are trying to help and support their staff who may be struggling financially, for example:

  • 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.
  • 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).
  • 12% of employers have introduced or plan to introduce, a financial wellbeing policy in direct response to the pandemic (29% already had one).

The top reason (cited by 49%) given by employers as to why they don’t have a financial wellbeing policy in place, was that senior management does not see it as a priority right now.

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Charles Cotton, senior performance and reward adviser at the CIPD, commented on the findings, “The pandemic has, unfortunately, hit many people’s finances hard, with many losing their jobs and others seeing their income fall. This has no doubt focused many employers’ minds on fairness and in-work poverty – and it’s good to see a number of them taking steps to protect people’s financial wellbeing during the pandemic.

“However, it’s also clear that there’s an opportunity to do more. We’ve seen many employers really step up to the plate when it comes to supporting their employees’ mental wellbeing during this crisis, and we’d like to see the same attention given to their employees’ financial wellbeing. For too long it’s been considered the poor relation to wellbeing but we know the two are intrinsically linked and should have parity.

“And whilst we fully acknowledge how tough it is for businesses right now, with many just focusing on surviving, we think there’s a strong case for employers to be doing more to support their people’s financial wellbeing. It may well be that even light-touch steps, such as signposting to independent money and debt advice, can start to make a difference.

“It should also be said that every employee stands to benefit from having better access to financial wellbeing support, particularly at key life stages, such as when they are starting out, becoming a parent or retiring.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.

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Why Dolan Accountancy?

Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.
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If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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