Members only
How to create an innovative financial wellbeing strategy that is inclusive of all employees
However, figures from the Money and Pensions Service show there’s a huge need for financial wellbeing initiatives in the workplace. Its Financial Capability Survey (2019) found that 47% of UK adults don’t feel confident making decisions about financial products and services, with 22% admitting they had less than £100 put aside for a rainy day. Given we’re in the midst of a global pandemic, which is having a serious negative impact on the economy, this last figure is even more concerning.
With so many different financial wellbeing needs in the workplace, a broad spread of educational content and support is essential. In addition, as well as being informative and entertaining, a financial wellbeing strategy must also give employees the confidence to reach out for further help if needed, especially during times of crisis.
Make it relevant
It’s unlikely that you’ll ever know the exact nature of your employees’ personal finances – and forget trying to pigeon hole them by age or salary – but it is sensible to make a financial wellbeing strategy relevant to them.
Start by asking them what they want. Running anonymous surveys will encourage them to give honest feedback and can help to shape your strategy. There’s also plenty of data to help you understand some broad trends. Your employee assistance programme (EAP) can provide management information on the types of call it receives, but also look at the take-up of benefits. If you offer flex, how much take-up deviates from the core benefits can be a good indicator of financial awareness.
It’s also prudent to link your financial wellbeing strategy to the benefits you offer. If everyone can access the workplace pension, chances are they’ll all benefit from some education around how they can make the most of it.
A profile of your workforce can also help. It is hard to target financial wellbeing initiatives, but if there are groups of new parents, first-time buyers, graduates dealing with debt, or employees approaching retirement, these topics can make engaging hooks for financial education.
Make it meaningful
Everyone can benefit from a bit of financial education, helping them to top up their pension, protect their family or track down the best insurance deal, but it’s also important to recognise that some employees might be struggling with money worries.
According to the Money and Pensions Service, nearly nine million people in the UK have serious debt problems, which can have significant ramifications for their physical and mental health and wellbeing, and these figures are likely to have been exasperated in recent weeks. Ensuring these individuals can access support is essential, so flag up the company’s EAP, reminding employees that it covers a broad range of wellbeing areas, including financial, and that it’s completely confidential. Providing this reassurance will encourage more employees to seek help.
Make it fun
While financial wellbeing can mean tackling problem debt or ramping up retirement savings, for many employees, making it fun is the most rewarding strategy.
Providing employees with access to personalised tools to help them work out what they need to save can transform a dull pension into some exciting holidays in retirement. Similarly, giving them access to a wellbeing app and letting them tailor the content they receive will make it more personal and engaging.
Another important – and fun – way to enhance employees’ financial wellbeing is by giving them access to a discount scheme. Whether this gives them money off financial products, their weekly shopping or next year’s summer holiday, saving money on normal expenses is sure to put a smile on anyone’s face.
This article is provided by Legal & General.
View more facts and figures from the Money and Pensions Service on adults’ financial capability.
Supplied by REBA Associate Member, Legal & General
One of the UK's leading group protection providers with over 85 years' experience.
