7 ways employers can help ensure employees have future-fit finances
In today’s economy, financial wellbeing strategies are no longer a nice-to-have.
Employees are increasingly expecting financial guidance from employers - especially in preparation for retirement.
With the high cost of living continuing to put a strain on people’s budgets, and financial worry starting to feel the norm, it is understandable that many employees feel financially unwell in today’s market.
To tackle this, employers can help support employees by implementing a wellbeing strategy.
In fact, REBA’s Financial Wellbeing Research 2023 found that 74% of employers plan to join up their financial wellbeing benefits in the next two years.
Here are seven ways employers can help employees plan for the future through an effective financial wellbeing strategy:
1. Understand employee needs
There is no one-size-fits-all approach to helping employees who may be struggling financially.
And, unfortunately, there can often be a stigma attached to having low financial capability, leaving many employees feeling unwilling or uncomfortable to discuss their financial concerns.
Enlist senior stakeholders to normalise conversations about money - this can encourage people to open up, which in turn can help employers understand what matters most to their employees.
2. Tailored support
Employers and managers can ensure tailored support by personalising conversations with employees to create a bespoke wellbeing support package for individuals.
Tailored support enables employees to make the right decisions for their financial future based on their life situation.
3. Preparation for different life stages
The cost-of-living crisis, paired with an ageing workforce, highlights the need for financial preparation more than ever.
An effective employee financial wellbeing strategy should detail the financial options available to individuals at different life stages.
Once a person gets elderly, care costs can take have a big impact, which is why understanding and investing in a pension now will ensure a greater safety net later. Many end up selling their house or releasing equity to handle care costs if pension savings aren’t enough.
Preparing for their own potential adult care needs, as well as the needs of their loved ones, will become imperative for employees as the UK population and workforce continues to age.
4. Make financial education personal
Although financial education at work is not new, there is a clear desire from employees for individualised support.
To provide the best support, offer accessible information through different channels, ensuring your organisation creates a safe space where employees can receive support without judgement.
This personal and open approach to financial education ensures everyone gets the support they need.
5. Look at your benefits
If you have financial wellbeing initiatives in place, ensure your employees are aware of what is available and that they are easy to access. If not, look at how you can boost visibility and awareness.
Businesses can start by improving signposting through increased communications, which could be done through a regular newsletter to remind employees of the support available if they need help.
Employees can experience financial worry at any time - especially as they reach retirement. Regular communication will increase an employer’s chance of delivering support when employees need it most.
6. Supporting the Living Pension
Since 2012, 10.4 million employees are saving into a workplace pension – demonstrating how auto-enrolment has transformed pensions saving in the UK.
But employees aren’t necessarily confident that their pension will deliver the income they need in retirement.
A Living Pension accreditation - the pensions equivalent of the Living Wage - can help employers ensure their workplace pension produces a minimum standard of living in retirement, personalised for the individual employee.
With the Living Pension, employees will feel confident they work for an employer who will help provide not only for their immediate needs, but for their future wellbeing as well.
7. Keep evolving your strategy
Creating a financial wellbeing strategy isn’t a one-off task. Employers need to review it to meet the changing needs of employees as they navigate different life stages.
We live in an increasingly ambiguous financial environment, with few assurances as to when the financial market may settle.
Greater financial education will continue to be a vital part of your financial wellbeing strategy, to enable your employees to thrive.
As employers, we have a key role to play in providing the knowledge and skills to prepare employees for their financial future and retirement, ensuring they learn how to effectively manage their finances in each stage of their life.
Tailored support, understanding what your employees need and ensuring the financial wellbeing of all employees are key for an effective financial wellbeing strategy.
In partnership with KareHero
The UK’s No1 adult caregiving support service' for employees. Helping families understand, find and fund elderly care.
