Financial wellness – the next stage in employee benefits?

Wellness has become the recent ‘buzzword’ in employee-engagement, which is often associated with gym membership, discounts on well-known brands & team building days out – all of which offer numerous ways of promoting a healthy work-life balance.

However, far fewer firms have been quick to engage in any “financial wellness” programmes, by not providing the financial support and guidance, which many staff members may be looking for.

So what is it exactly?

A quick definition: Financial wellness is having an understanding of your finances and taking care of it in such a way that you are prepared for any changes to your financial situation (debt, setting up a pension or mortgage advice).

A survey by Thomsons Online Benefits shows that over two-thirds of employers do not provide any help or guidance on financial issues. Just 10% of employers have a financial wellbeing programme in place.

The survey of 450 UK employers, covering 1.8 million employees, found that 22% of employers were reluctant to get involved in their employees’ financial lives, with a similar level worried about the cost of doing so.

Figures from Nudge Global published earlier this year revealed the following financial wellbeing concerns amongst employees:

• 66% worry about borrowing and debt.
• 50% having a plan, and saving towards it.
• 50% planning for retirement.
• 47% coping with changes in personal circumstances, such a long-term illness, having children or losing a partner.

With increased levels of individual debt concerning the government, the above research shows that anxiety around managing personal finances can lead to long term stress and poor mental and physical health, which in turn, results in absences, lower performance and increased turnover.

There are technical solutions available to help employers implement more financial support for their workplace (EG: companies like TRUSTIVO, Smarterly).

One great place to start however, is finding out your employees’ concerns. The benefits of helping to address them may well outweigh the drawbacks.