Report reveals need for joined-up financial wellbeing strategy
Employers should offer a range of financial wellbeing support that will help them to build employee financial resilience, as well as attract and retain top talent and manage organisational risk, according to the latest financial wellbeing research by REBA, in association with WEALTH at work.
1. Create a joined up strategy
For a financial wellbeing strategy to be effective it must be aligned to business objectives and embedded in the workplace culture. But the REBA research shows that while more than half (52%) of employers offer financial wellbeing benefits/services, they are not joined up in a strategy. Further, just 20% of larger businesses have a mature or well-developed financial wellbeing strategy.
It is important that employees have a clear understanding of what workplace benefits are available to them and how these can work together to support their overall financial wellbeing.
This could include an employee assistance programme (EAP) offering debt advice, access to discount schemes and the option to attend financial education sessions, all of which combined can help employees take control of their day-to-day finances.
2. Offer a range of support
The research reveals that pensions still dominate employers’ financial wellbeing support, with 76% of employers having rated their support for retirement saving as ‘very good’ or ‘fair’, compared with just 37% of organisations that rated their support for building a financial safety net as ‘very good’ or ‘fair’.
But employee demand is growing for well-designed financial wellbeing strategies. The research reveals that four in 10 employers (44%) are experiencing such a demand as the cost-of-living crisis continues to bite. But at the same time, two-thirds (66%) of employers rate their workplace debt management support as ‘poor’ and only 6% believe their organisation is very good at supporting budgeting and money management.
This is a clear call to action for employers to provide short, medium and long-term financial wellbeing support for employees, which means providing tailored support at all career stages and covering a mix of needs, such as debt management, building up an emergency fund and saving for a first home, as well as retirement.
Employers may also want to consider funding a range of workplace savings and benefits such as workplace ISAs, share plans or discount and salary sacrifice schemes to support these needs and build financial resilience.
3. Make it accessible
Whether companies have staff that are office-based, in the field, on a production line, working shifts, or even overseas, financial wellbeing support must be accessible to all to optimise buy-in, and boost employee engagement.
This means considering things such as different languages spoken across a workforce, as well as which employees have a digital device through which to access information and which workers have an email address.
Offering a range of delivery methods for financial wellbeing can also ensure most employees are always supported. This could include classroom-based financial education sessions, interactive online seminars, or even webcasts and digital tools including a ‘financial healthcheck’ that can be used anywhere, on any device.
4. Put measurements in place
The REBA research shows that more than one-third (35%) of employers do not measure any financial wellbeing at present and that just 40% use programme participation rates to measure the effectiveness of their financial wellbeing initiatives.
Measurement is crucial. Otherwise, it’s almost impossible to know if what you’re offering is a success. One way of doing this is to monitor if employees are actually using and engaging with your financial wellbeing programme.
For example, look at the take-up rate of financial education sessions or how many employees have viewed a webcast on the intranet.
Employee surveys can also reveal what positive steps employees have been taken after financial education, such as increasing their pension contributions.
5. Bring in a specialist
The research shows that responsibility for providing financial wellbeing support in the workplace currently falls squarely on pension providers (83%). This explains the skew towards retirement support, where 69% of respondents said that they offer guidance on retirement issues or plan to do so, compared with just 46% who provide support for financial emergencies.
It is almost inevitable that product providers will focus financial wellbeing on their areas of specialism. But there is a risk that such support will become siloed and miss ‘big picture’ concerns, such as general financial literacy and resilience. Increasing numbers of employers are now turning to specialist financial wellbeing providers to help their employees engage with their finances throughout their career.
Jonathan Watts-Lay, WEALTH at work director, says: “Financial wellbeing support is key to organisations becoming an employer of choice. Helping employees understand the key financial issues that relate to them, through providing a range of financial wellbeing support underpinned by financial education and guidance, is the most effective way of achieving this.
"Not only does it strengthen the financial resilience of the workforce, but it can also increase engagement levels and aid with recruitment and retention.”
In partnership with WEALTH at work
WEALTH at work is a leading financial wellbeing and retirement specialist - helping those in the workplace to improve their financial future.
