2020 was quite a daunting year that has plagued many with both health and financial concerns. Since the start of the global pandemic, most of us have probably wondered, “How long will my savings last if I were to get retrenched today?” According to an OCBC survey, two in three working Singaporeans do not have enough savings to last them beyond six months.
As the average time spent on finding new employment extends beyond three months, how can Singaporeans find financial stability to feel protected? Aside from the usual salary and bonus paid to employees, do companies need to provide further support for their staff financially?
Why do employers need to provide income stability?
There is an increasing expectation for companies to provide income stability to their employees, especially in recent times. Organisations that want to retain employees must understand why employees choose to stay, and their changing expectations. Companies also stand to gain when they offer financial assistance programmes and support to their employees, as employees are more likely to stay loyal for continued access to such assistance. These programmes may also improve employees’ financial literacy, benefitting companies as they would have a workforce equipped with more financial knowledge.
If you are wondering how much these additional employee benefits would cost you, you’ll be glad to know that it will hardly cost you anything.
How can employers grow their employee’s wealth?
Global companies listed in stock exchanges tend to offer shares purchase plans so that the interests of the employees are aligned with that of the company, which creates a win-win situation when the company revenue grows. Some start-ups are also known to offer stock options to their founding employees for the same reason.
However, small-and-medium enterprises and large local companies tend to face more resource limitations when it comes to offering financial benefits to their employees.
In Singapore, several banks and fintech firms have launched new solutions to meet increasing customer demands. These products, such as pension and bonus plans, allow companies and employees to manage and grow their wealth in a scalable manner. They aim to empower organisations in their talent management and support organisational objectives for compensation, retention and employee benefits.
Indeed, when it comes to building a stronger workforce in the new normal, HR leaders are beginning to recognise the need to go beyond perks such as lunch allowances and gym memberships that tend to have lower value in a flexible work setting. Instead, employers need to understand the real factors that are troubling their workforce. As shared by Amanda Ong, country manager of StashAway Singapore, “Delivering a real and pragmatic financial solution will not only allow an organisation to stand out in the recruiting sphere, but would also bring about a happy and productive workforce that has greater management of their own finances. Employees will also have a strong grasp of financial know-hows, allowing them to be more confident in making informed decisions in their spending and budgeting, and be more prepared for rainy days.”
The role of an employer is to set every person up for success. When companies invest in skills development and offer benefits that matter to employees, they constitutionally strengthen the value and perception of their employer brand. If you’re reading this as an employer, do you know what type of financial support your employees need now? If not, then it’s best to speak with them and find out.