How to Support Employee Financial Wellness

Employee financial wellness – fuelled by spiralling personal debt, increasing healthcare costs, rising housing prices and other external factors – has quickly become one of the most important factors in today’s workplaces. As an employer, it is important to think about what benefits your organisation has to offer and how, as an employer, you can provide healthier financial wellness for your workforce. Offering your employees financial opportunities is a key component to enhancing employee engagement and staying ahead of your competitors.

What do Employees Want?

Employees are looking for support in achieving their financial goals, whether that be buying a house, planning a holiday or starting a family. However, only 10% of UK employers currently have a financial wellness strategy in place. While almost all employers offer pensions plans, very few offer the kind of support that can improve employees’ current financial situation. Traditional and long-term benefits like an employee pension plan can have little meaning for employees who are encountering financial challenges day-to-day. Employers must evaluate how they are approaching financial wellness and consider whether what they’re offering is suitable.

Why is There a Disconnect?

For employers, several factors are holding them back from providing more financial support to employees; the main being is a lack of understanding of what employees need beyond base salaries and pensions. Another factor is employer concerns about the cost of having a financial wellness strategy. This presents a missed opportunity for employers to engage with their people, as employees of all ages are longing for more financial support. There’s a myth to dispel that these initiatives are too costly or would mean employers get too involved in employees’ personal finances.

What Can Employers Do?

Financial concerns have a significant impact on engagement and productivity, so it’s imperative for organisations to take action and address this disconnect to ensure they are getting the best from their employees. Technology enables employers to empower and educate their employees, without actually getting involved in their financial affairs. Offering benefits and rewards which allow your employees to save money presents employers with an invaluable opportunity to not only connect with their employees but to provide the financial support they are looking for. Not sure where to start? See our four steps on how to deliver a financial wellness programme that is bespoke for your business.

Four Steps to Providing Effective Financial Wellness

1. Leverage employee data

Collating, analysing and making use of the employee data you have can help you to tailor an offering which meets your employees’ demographical and unique financial needs. From student debt repayment plans for recent graduates to preferential mortgage rates for millennials and pension planning for all employees.

2. Educate and coach your employees

Proper money management and effective planning can begin with a simple tip or piece of advice. Luckily for today’s employers, there’s a whole industry which specialises in providing large-scale personal solutions. From digital investment services to professional financial coaching, employers have the power to make it easier for their employees to find financial stability.

3. Maximise employee engagement with personalised messaging

Use targeted technologies to tailor communication to reflect employee demographics. For example, if you’re looking to increase engagement, you can tailor messaging, tone and content per your internal policy and the employee’s stage within the organisation life-cycle. Additionally, if you are looking to highlight just your childcare policy or benefit, lift your messaging to focus only on those who have recently returned to work after parental leave.

4. Offer the right financial tools and services

A one-size-fits-all solution ultimately serves no one. Make sure your offerings/benefits package resonates with your unique employee demographics. What do your employees need help with? What do they worry most about? Stay on trend by offering the latest services and benefits packages to inspire your staff and to stand out from competitors.

A Unique Approach for Your Business

Drive productivity with MIT, our unique approach to enhanced employment and consultancy expertise is attuned to your needs and designed to stimulate business growth.

MIT provides your organisation with a comprehensive and wide-reaching range of benefits, including retail discounts, 24/7 access to an online doctor and a confidential helpline for stress or mental health-related issues (which equates to approx. £1,200 of annual savings).

Employers and HR teams get to take advantage of our expertise in employee administration, benefit from our consultancy on payroll, pensions, employment law and employee engagement; whilst offering your employees a huge range of benefits and financial savings.

Your employees are the heart of your business, so putting thought behind the benefits you offer shows them that you care about what matters to them. Financial savings are a key pull for enhancing employee engagement and staying ahead of your competitors.

In Summary

Employers have a duty to support their employees’ financial wellness. UK households are experiencing financial hardships and employees require greater financial support. By connecting employees to tools that will help them manage their own finances and offering a range of cost-saving benefits, organisations have an easy and scalable way to take advantage of the difference a well-delivered financial wellness strategy can make. Ensure financial wellness is part of your employee engagement strategy.

Learn more about how you can develop an enhanced employee engagement strategy that is right for your business and future growth goals, here.

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