Life is unpredictable and your employees will face many challenges and milestones, from starting a family or moving house to navigating a divorce or dealing with a bereavement.

These “pinch points” are often unexpected and could make it difficult for your staff to manage their wellbeing and remain productive at work. As an employer, you may want to consider how to help your team through these periods.

Read on to learn more about how life’s pinch points might affect your employees and five practical ways you could support them.

48% of employees would leave their job if bereavement support was inadequate

Bereavement is a significant emotional hurdle that most of us will face at some point. Research shows that if your business does not have a clear process in place for helping bereaved employees, you could lose valuable members of staff.

According to HR World, 48% of people surveyed said they would leave their job if they experienced a loss and the support they received at work wasn’t adequate. This rises to 57% among Millennials and 74% among Generation Z.

Divorce can have a lasting effect on employees’ finances

If your employees experience a divorce, they will likely struggle with the emotional toll of the separation. The financial implications can be significant, too.

As well as the cost of the divorce itself, many individuals will see a lasting impact on their overall financial stability.

For example, Legal & General reports that women see their household income fall by 50% in the year following divorce, compared to a 30% drop for men.

Not only does this create short-term financial pressures, but it can also make it more difficult to fund retirement. This may be especially true for women who, on average, have less in retirement savings than men.

According to Today’s Wills and Probate, married men have an average of £111,540 in pension savings, while married women only have £43,656.

After a divorce, one or both parties may face a shortfall in retirement as they are solely relying on their own pension.

Starting a family brings a shift in priorities

Starting a family is an exciting milestone for your employees, but it does bring challenges and a change in perspective.

New parents must consider how their family will cope if they become seriously ill or pass away. They might also want to build wealth to pay for their child’s education or help them get on the property ladder.

These are all areas where you may be able to support them.

5 practical ways you can support your employees through life’s pinch points

1. Have a clear bereavement policy

Knowing that you support their grieving process gives employees peace of mind that they can take the time they need out of work.

It’s important to set this out clearly with a bereavement policy so your employees know how much time off they are entitled to and what the expectations will be on their return to work.

2. Offer flexible working hours

When employees face difficult life events such as a bereavement or a relationship breakdown, they may have lots of administrative tasks to deal with. Equally, if their mental health is suffering, they might find it hard to maintain their regular working hours.

Offering flexibility means that employees can work while also managing their personal challenges.

This flexibility is equally beneficial for those with young children, who may struggle to fit family responsibilities around their work schedule.

3. Review your pension provision

When they face financial challenges such as divorce or the loss of a partner, your employees may worry about their retirement. Financial stress can significantly disrupt productivity, so you may want to consider ways to support your employees’ long-term planning and stability.

An employer-provided pension scheme is a valuable benefit here.

By offering a pension and matching increased contributions, as well as providing educational support, you can help employees take control of their retirement savings and reduce anxiety about the future.

4. Provide protection as an employee benefit

Protection could help your employees through many of life’s pinch points. For instance, if they fall ill, sustain an injury, or experience mental health struggles, income protection could help them remain financially stable while they recover.

Life cover also offers peace of mind for your employees as they know that their loved ones will be looked after should they pass away.

By offering protection as an employee benefit, you create a valuable safety net for your employees and prepare them for the unexpected.

Additional cover that extends beyond the scope of employee benefits may be required depending on a staff member’s personal situation.

5. Give your employees access to financial assistance

Financial literacy is one of the most effective employee benefits you can offer. Whether they are reorganising their finances after losing a partner, planning their retirement following a divorce, or building savings for their child, your employees may benefit from financial education and assistance.

The right support means they are prepared for every eventuality and can remain financially stable, no matter what life throws at them.

Get in touch

Our team are here to help you offer pensions and protection that give your employees confidence and peace of mind.

You can email grouprisk@rfsl.co.uk to learn more about our services today. Alternatively, call 01534 502000 in Jersey or 01481 747940 in Guernsey to discuss how we could support your business.

Please note

This article is for general information only and does not constitute advice. The information is aimed at individuals only.

All information is correct at the time of writing and is subject to change in the future.

A pension is a long-term investment not normally accessible until 50. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.

The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change. 

Note that life insurance and financial protection plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.

Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.

Rossborough Financial Services Limited is regulated by the Jersey Financial Services Commission under the Financial Services (Jersey) Law 1998 and licensed by the Guernsey Financial Services Commission.