Time to embrace the lifestyle contract

This is a guest blog by Stuart Peall at Mercer Marsh Benefits 

Years of uncertainty and upheaval – the pandemic, war in Europe, high inflation and political and social unrest –has begun to take its toll on employees.  

Now, they are focused on securing their work-life balance and well-being more than ever before. 

This means organisations can’t just return to pre-pandemic mindsets, according to recent research from Mercer’s Inside Employees’ Minds study. 

With two in five employees considering leaving their workplace, retention has become an urgent problem for companies. While pay is one reason, one-third of respondents want more flexibility than what is on offer and only two-thirds are satisfied with working at their company. 

But what is keeping employees awake at night? 

The study revealed that people are in financial pain.  

Low-income earners – those on less than £40,000 – are not the only ones who are worried. Those earning more than £80,000 are also citing levels of financial stress due to inflation and market volatility.  

Covering monthly expenses is the highest-rated concern by employees aged 18-54. Nearly 60% of high-income earners and over two-thirds of low-income earners have cut their spending. 

When considering the future, only around a quarter of low-income earners are confident to retire, compared to 57% of high-income employees. 

But what can employers do to alleviate their employees’ worries and meet their needs? 

Time to act 

Mercer’s Financial Wellbeing Index shows that two-thirds of organisations have yet to introduce formal employee financial well-being strategies, so now is the time to address employees’ top concerns. 

Employers must embrace a new employment lifestyle model, especially in this fast-changing environment. 

Organisations need to understand what employees’ priorities are and meet their changing financial, safety and wellbeing needs, holistically and with empathy. 

Of course, this will vary across companies, depending on demographics and what existing offerings are in place.  

However engaging and active listening is key, followed by taking a disciplined and prioritised approach to action to achieve healthy experiences in the workplace in exchange for sustainable commitment and retention. 

Mercer Marsh Benefits offers a free, no-obligation audit of your benefits, so you only pay for our services when you make changes. To receive a free audit, get in touch.