Financial Wellbeing is Now an Essential Part of Any Workplace Wellbeing Strategy
Nick Lawlor, CEO of Employee Financial Wellness on the current state of financial wellbeing as a strategic workplace initiative.
Financial wellbeing in the workplace is undergoing a transformation from a tactical approach to a more strategic and holistic one. This shift is driven by several factors, including a growing awareness of the importance of employee financial wellness and its impact on productivity, engagement, and retention. Research we recently carried out with employees across Ireland shows that 81% of employees find money matters stressful. How will this shift from tactical to strategic happen, here are some of the ways:
Now, companies are recognising that financial wellbeing is interconnected with other aspects of employees' lives, including their physical and mental health, job satisfaction, and overall quality of life. As a result, they are taking a more holistic approach to address these interrelated aspects and offering more integrated financial wellness programs including financial education.
Integration with Benefits:
Employers are integrating financial wellness programmes with their broader employee benefits packages. This includes linking financial wellness initiatives with health insurance, retirement plans, and other employee benefits to provide a more comprehensive support system for employees.
Strategic financial wellness programmes consider the individual needs of employees. This involves using data to tailor education and guidance based on an employee's financial situation, goals, and plans. Personalisation helps ensure that employees receive relevant and effective support.
Employers are shifting their focus from merely offering financial resources to actively engaging employees in their financial wellbeing. This might involve interactive programmes that encourage employees to set goals, track progress, and access resources. Engaged employees are more likely to take advantage of available resources and improve their financial health.
Strategic financial wellbeing initiatives are designed to be inclusive, recognising that employees at various stages of their careers may have different financial needs. They cater to diverse groups, including younger employees starting out, mid-career professionals, and those nearing retirement.
Companies are becoming more data-driven in their approach to financial wellness. They are using data to assess the impact of their programmes on employee engagement, productivity, and retention. This enables them to make data-driven decisions and refine their strategies.
Leadership and Culture:
Employers are recognising the role of leadership and organisational culture in promoting financial wellbeing. Leaders are encouraged to buy in, and the corporate culture fosters open conversations about money, reducing financial stress and stigma.
Beyond providing resources, companies are investing in ongoing financial education. They are offering workshops, webinars, and access to financial experts to help employees build financial literacy and make informed decisions.
Employee Assistance Programs (EAPs) are being integrated with financial wellness initiatives to address not only financial concerns but also the emotional and mental health aspects related to money and personal finances.
This shift from tactical to strategic reflects a broader understanding that employee financial health is not just a personal concern but also a strategic imperative for organisations.
For more about this strategic shift and the research results there is a free online event for all HR, wellbeing and people managers on Eventbrite on November 7th at 10.00am - Financial Wellbeing – It’s an Essential Workplace Strategy, Find Out Why. - https://ow.ly/4EHI50PXeTt
Nick Lawlor, CEO, Employee Financial Wellness