The latest Financial Wellbeing Research (“the REBA research”) by The Reward & Employee Benefits Association (REBA) in association with WEALTH at work, reveals the need for employers to introduce their organisations to a range of financial wellbeing support that will help them to build the financial resilience of the workforce, as well as attract and retain top talent and manage organisational risk.
Here are five top tips to help employers do just that.
1. Create a joined up strategy
A financial wellbeing strategy must be aligned to the business objectives and be embedded in the workplace culture for it to be effective. But the REBA research shows that while over 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 REBA 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 (44%) employers are experiencing such a demand, which is perhaps unsurprising given the current cost of living crisis affecting so many workers. But this comes at the same time as 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. All areas that are likely to become more prevalent because of the current environment.
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 ISA’s, share plans or discount and salary sacrifice schemes, to support these needs and build financial resilience.