4 ways to make your investment in financial benefits count!
Scroll down to find out how
Now, more than ever, Financial Wellbeing is a priority for many of us. And with the start of a new financial year in April, it's a good time to evaluate how well you support employees in this area. Financial Wellbeing is not a new concept and many organisations already have initiatives in place. However, have you considered if employees know how to utilise the existing financial tools available? Are you wondering how to translate your Financial Wellbeing strategy into a valuable benefits offering?
Read on to discover 4 ways you can empower your employees to build a financially secure future.
1. Address short, medium and long term financial goals.
What do we mean when we say Financial Wellbeing?
At Mercer we believe Financial Wellbeing consists of 4 core elements:
- Having control over day-to-day spending
- Being prepared for the unexpected
- Having the freedom to make choices in life
- Being on track for the future.
The above elements address Financial Wellbeing in general. However, it’s worth keeping these in mind when building an effective benefits strategy.
Successful financial benefit offerings should address short, medium and long term goals. For example, some employees may be struggling to pay existing debt, others may be saving for a house deposit. For those interested in longer-term investments, socially responsible options might be relevant. Providing benefits that are relevant to employees with diverse financial goals can really make a difference.
2. Ask your people what they need.
One of the most important aspects when making changes to your benefits offering is to make sure it is relevant to your employees. There is a saying “know your audience” for a reason.
Even the most sophisticated benefits offering won’t get the engagement it deserves if your people don’t find it relevant. For example, if an employee is struggling to pay off their debt, they may not be able to maximise their pension contributions at this time. On the other hand, when organisations conduct employee surveys or focus groups, they gain an understanding of what employees value.
Understanding your employees, their needs and priorities, allows you to build a financial benefits scheme fit for the future.
3. Educate.
As Benjamin Franklin said: “An investment in knowledge pays the best interest”. This is certainly the case when discussing financial benefits. By providing clear and concise education on financial benefits, companies empower employees to make well informed financial choices.
There are multiple sources available when it comes to benefits education:
- Your existing benefit providers may be able to help. Organising educational provider led sessions on benefits such as Pension, Financial Education, ISAs, Mortgage Advice etc. can be a great way to engage and educate employees on the existing benefits offering.
- Providing Financial Wellbeing apps, which help employees track their spending and optimise their savings, will help to ensure that they feel in control when it comes to finances.
4. Stay informed.
Keep up to date with the latest developments in the financial benefits space. This can be done by engaging with your existing benefit providers, or simply following benefit related articles. For a more in depth approach, invest in a benefits review or benchmarking services, which can highlight the areas for improvement and help you stay relevant in a fast changing market.
Not all new benefits and initiatives may be relevant to your organisation. When thinking of introducing a new benefit, it’s worth considering what value it will add to the overall benefits proposition. Adding benefits without considering the wider strategy behind them can lead to too much choice and not enough relevance. More benefits doesn’t always mean better choice.
Financial Wellbeing has never been so important and crucial to a benefits scheme as it is now.
Take time to evaluate and improve your financial benefits offering. Your employees will thank you for it.
As always – if you like what you've read, feel free to reach out to the team for more specific advice related to your organisation.