Four ways employers can encourage employees to save more
Numerous financial-related materials have repetitively emphasized that the best formula in saving money is taking the savings out of the salary first before allocating it to personal expenses. However, most of the time, some Filipinos would only save what’s left off of their salary after paying their recurring bills.
In a mid-2021 survey, it was found that a quarter of the respondents simply save what money they have after expenses without a proactive saving plan. Meanwhile, 29% of the respondents jot down their savings goal and actually set aside money to achieve this.
As concerned employers who look after the welfare of their employees, encouraging them to build and grow their savings should be one of the things that should be pushed forward especially at a time of uncertainty in the world.
In this line, we share with you five practical ways on how you can encourage your employees to save more of their hard-earned money.
- Urge employees to compare price points for household items
Aside from house rent/amortization, bills, and other related utilities, the bulk of our living expenses goes to common household items. Thanks to the digitalization of supermarkets, consumers now get to access the prices of the products that they usually buy in grocery stores. Employers can put out in their internal messaging the benefits of comparing price points among supermarkets and essentially planning their grocery trips beforehand.
It would also help to remind them to be vigilant in watching the prices of the items in the grocery carts since there are numerous instances where the entered prices in their receipts are different from the price displayed in the grocery shelves.
- Initiate savings challenge among teams
To make saving money more enjoyable, it would help if many people are actually doing it simultaneously. This way, people will be more motivated knowing that the majority of the team members have the same experience as them. You can even unleash the competitiveness of the people and consider rewarding the winning group with a small incentive. Savings challenge need not be too complicated, one can start with the trending ipon challenge accessible online.
- Offer individual retirement account
A payroll deduction savings can be offered to your employees wherein their desired amount shall be deducted from their salary which goes straight to their savings account, kept and maintained by the company. This way, employees know that by the end of their tenure in the company, they have money that can complement their retirement package.
- Educate employees on financial empowerment
There is nothing more powerful than a person equipped with the proper knowledge on money management. Provide your employees access to financial literacy training and webinars so that they will be empowered on how they can better handle their money. Actionable steps on how to budget for important life milestones such as wedding, starting a family, childcare, sending a kid to school, and even up to retirement will surely be helpful for them.
With all the uncertainties happening in the world–the pandemic, the gas price hike and other commodities, as well as the war–our financial security must be one of the things that we should prioritize. As your financial buddy, SAVii continuously provides employers and employees with insightful fundamental knowledge on personal financial management. Should you wish to suggest a topic that you’d like us to discuss, feel free to reach out.