How to put your financial wellbeing strategy into action
Close Brothers’ 2023 Spotlight on UK Financial Wellbeing report found that more than a quarter (28%) of employees are unhappy with their finances, and 36% say they worry about money always or often.
There’s a predictable knock-on effect at work, with 24% saying that this affects their work and 22% saying it affects their mental health.
It can be easy to assume that these worries are restricted to low-paid employees, or people approaching retirement. But they are likely to affect the whole workforce, regardless of pay or seniority.
Every employee will have their own blend of personal financial circumstances, priorities, aspirations and standards of living, which will determine their financial wellbeing.
That means financial wellbeing strategies need to be flexible enough to meet the needs of a wide range of employees – of all ages and career levels.
Taken from the REBA/Close Brothers: Practical Guide To Preparing For A New Era Of Financial Wellbeing, here are some top tips on how to put a financial wellbeing strategy in place.
Understand employees’ needs across the whole workforce
Everyone in the workplace has a unique set of financial needs. Although retirement adequacy, financial literacy or debt issues will be priorities for some employees, there will also be others that want to buy property, need help with investing, or are thinking about protection needs.
Identify gaps
Armed with knowledge about employees’ needs, reward and benefits professionals can explore the benefits they already offer and identify obsolete benefits and gaps.
Many benefits, such as group income protection and car salary sacrifice, can form part of a financial wellbeing strategy, so think creatively about what you already offer.
Think about timing
There are many points in an employee’s life where they might need help with their financial wellbeing.
Think through how employees will find the right type of help, such as financial education or financial advice, and at the right time.
Link financial wellbeing with wider benefits and HR strategies
Financial wellbeing can help support many HR and top-line business objectives.
These could include recruitment and retention, supporting employees’ mental wellbeing, or reducing inequalities, such as gender pensions gaps.
Be clear what you want from providers and partners
Do products or services meet the objectives you’ve set for your financial wellbeing programme, as well as wider benefits strategies and HR goals?
How can providers and partners work with employers to meet these goals – for example, in terms of data/feedback, use of apps or other services to support employees, and willingness to work alongside other providers.
And, when it comes to a holistic, clear financial wellbeing strategy, you will get better outcomes by asking providers to deliver their core services, and not also requiring them to deliver financial education as an add-on.
Look to the long term
Create a longer-term plan for financial wellbeing that, as well as focusing on the most immediate priorities for employees, explores how to introduce products and services that will help people over time.
This should also include reviewing the strategy regularly, offering what employees need and supporting wider business goals.
