Why personalisation has become the keystone of financial wellbeing
The employee benefits industry is older than you might think.
In 13 BCE, Caesar Augustus gave soldiers a retirement package in an effort to keep his legions from rebelling.
These days, leaders, instead, use benefits to attract and retain talent. And it works – 80% of workers would keep a job with benefits rather than take one that offered more pay but no benefits.
The evolution from traditional benefits and education to personalised guidance and innovative products has reshaped how employees perceive and manage wellbeing and financial health.
Traditional benefits
Historically, financial wellness programmes were limited to retirement plans and health insurance.
While valuable, they often fall short not only in addressing the diverse financial needs of employees, but in supporting a deeper understanding of what’s right for them at that time.
Traditionally, workplace financial educational resources were generic and lacked personalisation, making it less engaging and more challenging for employees to use the guidance and apply it to their unique circumstances.
Personalisation shift
Recognising the limitations of a one-size-fits-all approach, the employee benefits industry has embraced personalisation as a cornerstone of wellbeing.
In recent years, technology like AI and machine learning has enabled the development of solutions that cater to individual life and financial goals, communication and channel choices, financial interests and personal circumstances, among other preferences.
Emerging market innovations
- Financial health check-ups: Aggregating financial health data to provide holistic insights into an individual’s financial health. A financial health assessment will offer personalised recommendations and insights to help employees make more informed decisions.
- Data and insights: The ability to track financial education engagement, financial health scores, employee needs and interests and wider business outcomes. Employers now have access to a new wave of on-demand, rapid insight that answers any question and informs wellness and employee benefit strategies.
- Digital guides: Integrated coaching tools, powered by AI that enable easy access to in-platform education that the employee needs, when they need it. Conversational, automated and scalable.
The role of employers
Employers play a critical role in promoting financial wellness among their workforce. Beyond a comprehensive benefits package, most organisations are investing in financial wellness programmes.
Nudge’s recent research found that 50% of employers currently offer financial education and 38% are planning to implement. Successful workplace financial wellness programmes are underpinned by:
- Personalised, impartial education
- Targeted communication (including toolkits for employers) and training
- Access to innovative financial tools
- Performance insights for employers to understand what’s engaging employees
By prioritising employee financial wellbeing, organisations can strengthen employee-employer relationships, improve engagement, enhance productivity, and revolutionise overall employee wellbeing.
The promise of AI
Looking ahead, the future of financial wellness promises even greater integration of technology, data insights, and behavioural science.
AI-driven solutions will continue to evolve, providing increasingly sophisticated insights and recommendations.
Employers will play an instrumental role in shaping this future, championing innovation and advocating for cutting-edge technology to support employee financial health and wellbeing.
The evolution of financial wellness reflects a broader shift towards personalised, tech-driven solutions that empower individuals to take control of their financial futures.
As more employers embrace their role in financial wellbeing, we can expect to see more products enter the market to improve the financial health of workers worldwide.
Get in touch if you want to find out more about nudge’s latest financial wellbeing innovations.
In partnership with Nudge
A leading financial wellbeing benefit using behavioural science & technology to help employees.
