Ian Sims, a debt advisor for over 30 years and now the founder of Badger Loans explains that “As part of the employee benefits proposition, employers should be helping staff with their money issues.”
“We have over 10% of the UK population currently in a state of debt, which is around 10 million people and employers might be turning a blind eye at the major stress and financial troubles that their staff are having.”
“We are offering our staff free drinks after work or discounts from high street brands, but this might be exacerbating the problem.”
“Employee benefits are designed to help make employees feel rewarded, engaged and more content in their jobs. But if they have financial problems at home, nothing is going to take that stress away, until their finances are truly in a better position.”
A number of new startups have emerged in recent years, collaborating financial products with employers to offer more flexible finance or access to salaries.
Startups like Hastee and Wagestream allow staff to draw down up to 40% of their monthly salary before pay date if they need it, charging the employer just £1 per transaction. Hastee also has a debit card that can be used on demand, taking early funds straight from your monthly pay.
The likes of Neyber offered low-cost affordable loans and financial education and courses to staff when employers signed up. Despite struggling to gain momentum, the strong concept was acquired by employee wellness provider, Salary Finance.
“Badger Loans offers low-cost loans to UK consumers” Sims continues; “and we are trying to promote a message of looking at all the financial alternatives possible and avoiding the payday trap.”
“We have written a lot about the financial breaks and payment holidays that you can utilise during COVID-19, from both creditors and the UK government. If you are struggling, there is help available.”
“But rather than resorting to high-cost lending, speak to your employer in the first place and see what options are available. If they do not have anything to offer, encourage them to use platforms like Salary Finance and Hastee and get your employee on board if they really want to boost wellbeing for their staff.”
