Why global financial wellbeing benefits need to reflect local needs

The financial challenges that people face in different parts of the world might look the same, but in practice are quite different.

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Whether it’s employment terms and conditions, branding or product delivery, international companies ideally want a single approach – it only makes sense. But even seemingly homogenous products like Coca-Cola and McDonalds are adapted to meet local tastes and cultural differences.

In the same way, something as multi-faceted as financial wellbeing also doesn’t travel well as a standard model or approach.

The financial challenges that people face in different parts of the world might look the same, but in practice are quite different. These differences can be in terms of priorities, specific local challenges and, of course, local financial regulations and available products.

Buying a home

For example, in South Africa one of the biggest challenges facing employees is owning their home. And while getting on the housing ladder is also a big challenge here in the UK, there are some marked differences.

In the UK it’s mainly an issue for younger people, whereas in South Africa the issue crosses all age demographics. The solutions in the UK are about saving for a deposit and education about the home-buying process. Whereas in South Africa it’s about providing the entire purchase price to people who won’t necessarily have access to mortgages.

Saving for a deposit in the UK might be about a Lifetime ISA offering a 25% government bonus – it’s a product specifically focused on getting on the housing ladder. But in South Africa tthere is a workplace retirement savings vehicle called a Provident Fund which can act as collateral for the entire purchase price.

It’s the same problem, but the challenges are different and so are the solutions. People in both locales face the same challenge but it would be a mistake to treat them the same.

Retirement challenge

Saving for retirement is another example. This is arguably a challenge for every employee in every region where a company operates, but again the degree of the challenge varies.

Here in the UK we still have a ‘reasonable’ state pension and so for a lot of people it’s about topping this up. But in South Africa, where the state pension is less than £100 a month for a lot of employees, it’s effectively about private provision only – in other words, it’s arguably more critical.

Financial priorities differ according to age. From Cushon’s research it’s clear that for younger people the main priorities are about getting on the house ladder and managing debt. And as people get older, concern about saving for retirement increases. But there are also marked regional differences. For example, in South Africa the main concern across all demographics is about being able to make ends meet today. It’s a reality of the local economic conditions.

Centralised, but local

But just as it’s possible to globalise brands, it is also possible to have an international centralised approach to financial wellbeing. But there need to be local teams or ambassadors who truly understand the realities on the ground.

The global vision of the company can be to help all employees get on the housing ladder and the homogenous framework may well consist of education, employer support, financial advice and employer provision of solutions. But that’s where it ends. A ‘one size fits all’ approach doesn’t work: there are too many regional differences.

Despite potential difficulties in sourcing local suppliers to deliver the full breadth of services, the practical application and delivery of financial wellbeing programmes must be at the local level. It’s the only way to get all employees, regardless of where they live, financially resilient and feeling financially well.