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The Power of Living Wage Employers

04 May 2022 | Annabel Hudson + Zoe Bennfors

Very few of us go through a day without thinking about our finances – it’s just one of those things that we can’t seem to avoid.

Finances, stress, and the impact on mental health   

Very few of us go through a day without thinking about our finances – it’s just one of those things that we can’t seem to avoid. Money is one of the biggest causes of stress today, with over half of Britons being stressed about their financial situation amid growing debt struggles.  

Money has the potential to have a significant impact on one’s mental health, in both their personal and work lives. Stresses related to money are known to cause heightened anxiety, low-quality sleep, and lack of social interaction, which when observed together are a recipe for poor mental health. This will typically have a knock on effect into people’s work lives, with YouGov stating that 80% of workers believe being stressed about money negatively affects how they perform at work. Despite these alarming statistics, 66% of employees report they would feel uncomfortable informing their boss of their financial stress.  

This already-serious problem has been exacerbated by insufficient wages being paid to employees, and by the ongoing cost of living crisis, with more and more people now struggling to get by. It is suggested that people pay 20% of their income into their savings each month, for many, this is unrealistic, and for others we need to think about how much they will then take out by the end of the month just to cover costs. Such situations often force people into their overdrafts or resorting to payday loans with extortionate interest rates, and when this occurs, it is very tricky to resolve the situation.  

A great way to address this rapidly growing is issue is through paying people across the country a fair, and equal wage, and that’s why we, here at Pogo Studio, are a Living Wage Employer.  

 

The Power of Living Wage Employers  

The real Living Wage is deemed to be a wage which is high enough to maintain a normal standard of living and is based on the cost of living. It is indeed different to minimum wage, as all employers must pay minimum wage, whereas Living Wage is paid voluntary by organisations.  

Employers are in a unique position to support their workers with their financial management. Living Wage Employers have the power to drastically improve their employees’ lives. Let’s look at a few reasons why:  

  • Allows people to save a little extra money for an emergency or for a rainy day, which will reduce the pressure if an unexpected cost does pop up  
  • It removes the stress and worry of whether someone will be able to afford the basics, i.e., food and heating
  • It allows people to have the extra money to spend socialising with friends and family, something which is hugely important for our mental health 

Improving employee’s mental health through something as simple as offering them a fair wage is also advantageous to the organisation. According to the Living Wage Foundation, 75% of organisations say offering the Living Wage has increased motivation and retention rates, while a further 58% say it has improvedrelationships between employees and managers.  

We here at Pogo Studio pride ourselves on having a positive corporate culture, and are very thankful to have a team who, at least the majority of the time, really do enjoy their roles and want  to see the business succeed. Being a Living Wage Employer, highlights the care we have for our colleagues, and this is reciprocated through their hard work and dedication.   

 

Let’s talk money saving tips  

 

Automatic Saving Apps  

  • Autosaving apps take small amounts of your money, to help you save without noticing. The most common way they do this is through ‘rounding up’ your purchases to the nearest pound and storing this rounded up amount in a secure savings account. This is a great way to save, especially for those people who struggle to with saving large amounts – you’d be surprised how much money you can save up in ‘loose change’ by the end of the year.  Some good ones we recommend include Plum, Moneybox and Starling Bank . 

 

Research High Interest Saving Accounts 

  • There are many saving accounts available on the market, through a variety of different banks. However, finding one with a high interest rate is key to pushing up your savings, even if you’re not saving much – every little helps. The Money Saving Expert highlights some of the best saving accounts available, including the likes of Chase, Tandem and Nationwide. 

Payroll Savings  

  • In the same way we never see the money before it’s added to our pension pots, employers could offer workers the option for their savings. Salary-linked savings is the next evolution in employers supporting staff, in which employers will automatically being putting employee’s savings aside. No longer would employees reach the end of the month and feel deflated by their saving habits, and the impact on stress levels would be huge. Level is a great organisation dedicated to helping businesses provide better support for their employees when it comes to managing their finances, by offering such a scheme. 

 

Resources  

 

Here at Pogo Studio we are proud to be a Living Wage Employer. If your company would like to find out how you can become the same, click here. Thank you to Zoe Bennfors of Level for sharing her advice and helping write this post in partnership with Pogo Studio.