December 12th 2014
The future wellbeing of your employees is paramount to the success of your business.
But how many of us take this for granted and think that it’s simply down to the employee themselves? If you have a poor work attendance record then perhaps you need to ask the question why? Or what can I do to improve this situation? Some fairly simple to implement strategies could improve your bottom line by as much as 10%!
A wealth of research and evidence identifies that ‘financial stress’ causes a significant loss of productivity in all businesses, from the largest UK corporations to the smallest sole traders.
The Office for National Statistics (ONS) data records that 15.2 million days were lost due to stress-related absences in 2013. At an average national income of £95.80 a day, that would result in an annual loss to companies of £465m - what affect are lost days having on your business?
Auto Enrolment Pensions - adding to employers and employees financial stress?
The Government’s new pensions initiative auto enrolment is generally seen as a good thing, providing access to a workplace pension for up to 19 million new workers and compelling employers and employees to save for retirement has to be a good thing right? Sadly, not everyone sees it that way, many companies see auto enrolment as a necessary evil, increased costs, an admin burden and a compliance nightmare. Many employers plan to do the bare minimum allowable under the rules which leads to the changes being introduced and communicated negatively and in some cases not at all. This kind of approach which is seen sadly far too often leads to misunderstandings, mistrust and simply adds to an employee’s overall financial stress level which has the potential to increase levels of work absence.
Fringe benefits - effective implementation of an auto enrolment pension scheme?
As most business owners know good communication is the key to success, therefore simply having a pension scheme in place with little or no communication is almost worthless. There are some specialist companies now who provide and implement a Financial Education & Wellbeing Programme
(FEWP) for employees at the same time as arranging the auto enrolment pension. This firstly helps the business owner as it can assist in taking away the stress of fielding awkward pensions questions and secondly it assists the employee to get a better grasp of why the workplace pension is so important and what benefits they can expect at retirement. This provides the employee with an element of control and allows them to make a balanced judgment about their future from a position of knowledge.
FEWP’s can also provide additional financial benefits such as showing employees how to save money on their household budget, these savings are can be as high as £1,000 per annum which means that the question of affordability of the new pension becomes far less of an issue and the prospect of a happier more productive employee becomes more of a probability if not a reality.
Implementing a well-balanced Financial Education & Wellbeing Programme at the same time as introducing your Workplace Pension requires some serious thinking and planning.
If you’re interested in learning more about transforming auto-enrolment from a dull boring financial burden into something that can stimulate massive employee engagement and deliver significant savings and increases in productivity and profit then please contact DSC Chartered Accountants in Harrogate.
DSC are working with Corporate Futures to help you take the stress out of Auto Enrolment. Free meetings are available to help you plan and prepare - call 01423 560547 or email email@example.com to book your free consultation today.
Article provided by Corporate Futures on 20th November 2014. www.corporatefutures.eu
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