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4 tips for building young employees’ financial resilience
High-earning young employees feel more connected to their employer when receiving financial education benefits, according to latest research by Nudge.
The survey also showed that these employees (aged up to 34) and earning $92,000 (£74.500) or more a year are 80% more likely to trust their employers, compared with those who do not receive financial education benefits.
The effect financial wellbeing has on the relationship between the younger workforce and their employers is clear – but how do you ensure your strategy is suitable?
We’ve outlined 4 top tips for building a programme that will meet the needs of your younger employees.
1. Keep it current
It’s near-impossible to read the news and not face anxiety-inducing headlines about student debt, inflation and the increased difficulty young people face in buying a home. While businesses can’t control macroeconomic factors that cause financial and emotional stress, they can support employees with tools and knowledge to help them best manage their money and build resilience during difficult times.
By breaking down the headlines with bite-sized personal finance articles on relevant, factual changes to topics most relevant to young earners, you can ensure your employees stay up to date. Content that is timely and concise, with clear conclusions and next steps will encourage action and set your people on the path to a brighter financial future.
2. Make it mobile
According to a survey by GOBankingRates, 34% of 18-24 year-olds use social media as their primary source of financial knowledge. By providing a mobile-friendly financial education benefit, employers can intercept misinformation and provide an impartial resource that’s free from ‘finfluencers’ and sponsored content.
Mobile-friendly financial education also allows content to be quickly shared with friends and family and ensures content is accessible on-the-go and from anywhere in world.
3. Customise communications
If your wellbeing programme is underpinned by technology, you’ll have access to unique data insights into your employees’ financial needs. This will allow you to see if your benefit offering is meeting their requirements or where there might be gaps.
Technology allows you to personalise communications related to individuals’ goals, and signpost to selected resources to fill any gaps in their knowledge. A personalised approach is proven to improve engagement, which will, in turn, build trust, as well as confidence and skills to invest, save or simply manage their personal finances.
4. Encourage action
When there’s something people need to know, or a personal finance action they ought to take, make sure they are informed in the moment via Whatsapp, email, or their preferred channel. By automatically notifying employees of changes, you can help them prepare for the impact this might have on their finances.
If these notifications link to interactive tools, employees can clearly see the tangible impact their student loan, pension plan or side hustle will have on both their monthly budget and future savings and they will be more inclined to take action.
Combining personalised financial education and step-by-step guides with calculators, interactive budget planners, saving plans and trackers allows employees to learn how to control those things that are within their power: economising, growing money through investment and increasing savings.
Young people are 53% more likely to feel connected to their employer when they receive financial education benefits, so take the opportunity to engage your younger employees.
Empower them to take control of their money with impartial financial education – and find out all the ways financial education positively affects business.
Read the full report on young, high-earners in our recent global financial wellbeing research.
Supplied by REBA Associate Member, Nudge
A leading financial wellbeing benefit using behavioural science & technology to help employees.
