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13 Nov 2017
by Martin Laws

Would you make an important personal financial decision based on a Google search?

We hope not. Employees tell us they want more financial guidance from their employer. In fact, 76% of employees hope financial education is something they will get at work, according to the Capita Employee Insight Report 2016/17. But, what is the most commonly cited resource for this education? Google.

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It's simple and it's private. But it's not necessarily impartial, relevant, or even correct. The blurring of fact and fiction that has given rise to the term 'fake news' means those using the internet to alleviate their financial worries risk stumbling across misleading information or taking advice from an unverified source.

Either way, Google is not there to empower people to take control of their money-related stress. So, aside from the fact that employees want more support, why should businesses invest in a better approach to financial wellness?

Approximately half a day per person, per month is lost if an employee is suffering from financial stress and research has found that one in four employees has lost sleep over money worries. People bring their worries to work, reducing productivity and engagement. So, addressing financial wellness creates a happier, healthier, more productive workforce.

The HRD's role in wellness

In Capita's Guide to Wellness in the Workplace we've devised a simple check-list to help HRDs and business leaders begin to address financial wellness. Financial wellness is not correlated to how much someone earns or how much they spend; everyone has a personal relationship with finances and it's in our interest to empower people to make good decisions.

Given HR's strategic role in reward, recognition and engagement, financial wellness is an area in which HR can take the lead and build the business case. Financial wellness is one of the driving forces of overall employee wellbeing - and therefore of productivity and company performance.

Here are a few tips if you are thinking about formulating or reviewing your approach to financial wellness:

1) Context is everything

It's also so difficult to provide when personal finances are not something people are comfortable discussing at work. A financial wellness strategy will start to break the taboo and there are tools that enable employees to assess their financial wellness and gauge how they are doing relevant to others in similar situations.

2) Make it personal and relevant

Improving financial wellness certainly isn't all about complex tax planning. It could be about how to live within a budget, how to manage or pay down debt, or to start planning for retirement. Understanding how people feel and giving them access to personalised, relevant resources at the right time is essential.

3) Help employees take action

It's clear from our annual Employee Insight research that employees want to be treated as individuals in the context of benefits and the workplace. They want empowerment and choice - so a strategy for financial wellness should allow individuals to make decisions and effect change and see how they are progressing.

4) Be compliant - and then build on it

There are regulatory duties as well as a moral responsibility to support financial wellness. Auto-enrolment and the introduction of the retirement guidance guarantee are areas where the provision of information by an employer is incredibly important.

Evidence suggests a link between financial stress and workplace performance through improved presenteeism, physical and mental health. Therefore, a wellbeing strategy that reduces dependence on Google for financial guidance has got to pay dividends.  

Through our research and work with clients, Capita has identified three elements that directly affect employee wellbeing: physical, mental and financial stress. Addressing this combination of interlinked factors has the potential to increase levels of engagement, effectiveness and efficiency, and to create clear financial ROI.

Read more about the Capita Guide to Wellness in the Workplace here. Click here to access 

Martin Laws is senior reward and benefit consultant at Capita Employee Benefits. 

This article was provided by Capita Employee Benefits. 

Martin is speaking at the REBA Innovation Day on 23 November providing an update on the latest digital solutions to engage staff in future financial planning. Click here.

 

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