3 smart ways to support your people when pay rises aren't possible

The cost-of-living crisis might be easing, but for many employees, the pressure hasn't totally gone away. Prices are still high, bills are still stretching pay checks to their limits and financial worries are still creeping into everyday life. And when financial stress builds up at home, it doesn't just stay there – it follows people to work, affecting their focus and performance. 

As an employer, your people are looking to you for support. But you have your own challenges to deal with – like rising NI costs which, as we covered in our previous blog, are leading to hiring freezes, wage stagnation and even job cuts just to stay afloat.

While pay rises might not be on the table, there are still meaningful ways to help your people feel financially supported.  

Here are three tips to support your employees when you can’t increase their salaries.

 

From taboo to transparency

For most people, talking about money is a bit awkward. In fact, a survey we conducted in 2023 showed that just under half of us would only talk about money if someone else brought it up first. That's a clear sign that the stigma around money conversations is alive and well.  

The problem is, when people don't feel comfortable talking about money, they tend to bottle it up – often until things have reached breaking point. Financial stress can feel isolating and when it's left to spiral, it has a serious impact on mental health.

You can help break this stigma by encouraging open, shame-free conversations about money in the workplace. When people feel safe talking about their finances, they're more likely to reach out for help early – before small issues become full-blown crises.

Here's how you can help your team feel more comfortable talking about money:

Lead by example – Empower leaders in your organisation to start conversations and share how they've tackled their own money challenges. They don't need to get too personal, but hearing leaders talk openly about money helps normalise the conversation and encourages others to do the same.

Listen anonymously – Create opportunities for staff to leave anonymous feedback about the financial support they need. This gives you valuable insight into what would actually help your people.

Equip your managers – Train managers to spot the signs of financial stress and give them the tools to have supportive conversations. Knowing how to guide someone towards the right resources can make all the difference if they're struggling.  

 

Help staff master their money

Having a healthy relationship with money isn't just about how much you earn – it's about how you manage it. But most of us weren't taught how to handle money properly and figuring it out on your own can feel overwhelming. That's why giving your team the knowledge, tools and resources to take control of their finances is so vital.  

Enriching your employee value proposition with financial education helps your people feel more confident about managing their money. When they know how to budget, save and plan effectively through the right education, it helps them build healthy money habits that last.

Here are a few ideas: 

• Signpost to free, reputable resources 

• Provide access to a financial advisor, or if the budget won’t stretch, partner with a financial advisor to offer discounted rates to your workforce 

• Consider allowing staff to use training and upskilling time to learn more about their finances 

 

Stretch salaries & support wellbeing 

If you already have a benefits provision, take a moment to review it. What support do you offer? What engagement are you seeing? Are there gaps in your package? 

If you find you could be doing more to support financial wellbeing but have no budget, what could you swap? Be strategic about it. For instance, you might offer a gym scheme which supports both physical and financial wellbeing, which is really valuable for employees who like to work out. However, it might be better to use that budget for a different benefit that only supports financial wellbeing but works for everyone, rather than a select few. 

And when pay rises aren't possible, helping your people make the most of their salaries can go a long way. Providing benefits that help stretch their income like discounts on everyday spending (such as supermarkets, food and drink, and utilities) makes their money work harder without needing to increase their pay.

Salary sacrifice benefits are another smart way to ease financial pressure. Not only can they unlock NI and pension savings for employees (and sometimes for employers too), but they also help with budgeting by letting staff spread the cost of bigger purchases over a fixed term straight from their salary. That can be a game changer when it comes to handling expensive seasons like Christmas or replacing an essential appliance without having to rely on credit cards or high interest loans.

But the support shouldn't stop there. Providing access to mental health support through an Employee Assistance Programme (EAP) can give staff a vital safety net. Alongside financial education and resources, an EAP helps people stay mentally and emotionally resilient. When your people feel supported and have the tools to manage life's ups and downs, they're more likely to stay focused and engaged at work.

 

Ready to create a more money-confident team?

If you'd like to learn more about how you can help your workforce feel more confident with money, know where to turn for support and stay financially resilient, get in touch to explore our impactful employee benefits.