Why a definition of financial wellbeing is essential for a successful strategy implementation
A recent REBA survey also found that 25% of employees feel that financial concerns affect their ability to do their job, so what can employers do to help?
We decided to mull this issue over with clients at a recent dinner event we hosted, to see where their thinking was at on the issue.
We all remember a time when financial education in the workplace focussed on pensions and not much else but it’s not surprising given the headline stats that financial wellness is one of the fastest growing areas of wellbeing at work.
We have seen financial wellbeing becoming a buzz phrase and the market explode with financial education providers, robo-advice, loans, saving and Employee Assistance Plan providers but is that enough to solve the problem?
Although there is much stronger awareness that financial wellbeing solutions are an important part of recruitment and productivity, are employers starting to see the results?
It was agreed that a clear definition of financial wellbeing is an essential starting point. For an employer it’s about helping employees to understand their relationship with money and to provide wider and more flexible programmes of benefits and education to support their financial security and resilience.
Simply offering a wellness programme provides no guarantee of improving employees’ wellbeing; employees must be aware of the programme, understand it and be encouraged to use it, which is where things can get trickier.
Furthermore there is the challenge of balancing employee choice without offering too much, as behavioural psychology tells us that too much choice results in the employee shying away from making any choice!
Although technology is increasingly seen as part of the engagement solution, research by the creative communications agency, like minds, has shown that all age groups of employees prefer to talk through options face to face.
If done badly, an ineffective financial wellbeing programme not only drains financial resource but can erode credibility for the employer and yield no return on investment.
So what’s the answer?
At our dinner event our guests agreed that companies are most successful at creating a culture of financial wellbeing when they provide the right tools and a multi-faceted approach. This approach should take into account that engagement is both emotional and rational and that people act according to their short and medium term interests as well as how they feel.
Employees want to know what their peers doing and want a programme that makes it as easy for them to save as it does for them to spend, all whilst saving time and costs.
Sarah Steel is a senior consultant at Hymans Robertson.
This article was provided by Hymans Robertson.
In partnership with Hymans Robertson
We're one of the longest established independent consulting and actuarial firms in the UK
