COVID-19: Half of all employers now have a financial wellbeing policy in place

Half of all employers now have a financial wellbeing policy in place, according to recent research conducted by the Chartered Institute of Personnel and Development (CIPD).

The research surveyed 420 employers in the UK and focused on financial being, with a particular focus on financial issues within the last twelve months.

The research has found that there has been an increase in the number of employers that have a financial wellbeing policy in place, with a report from before the coronavirus pandemic showing that just 29 per cent had a defined policy.

Recent statistics from the ONS have stated that personal borrowing has increased in the past year, with a ‘widening’ financial gap appearing.

As a result, employers are taking more consideration over how their employers are impacted by financial issues, with 12 per cent indicating an intention to introduce a policy in direct response to the pandemic.

Additionally, 19 per cent of employers have stated that they are considering becoming a ‘Living Wage Foundation’ certified employer. This means that employees are paid a minimum wage of £9.50 per hour in the UK (£10.85 in London) for all employees aged 18 and over.

Furthermore, 24 per cent of employers have explored the impact that the pandemic has had on their employees so that they can provide support, while a further 18 per cent are planning to do so.

Charles Cotton, senior performance and reward adviser at the CIPD, said: “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.”

How can we help?

At AGS HR, we can advise on all aspects of the challenges you may face in the coming months, such as returning to work, health and safety considerations, reviewing employment contracts and redundancy considerations, with easy to use documents and practical advice.

For help and advice, contact our expert team at AGS HR Solutions today to discuss your requirements.