A provider of monetary education has offered tips on how to encourage employees to engage with their finances as the impact of poor financial wellbeing can be damaging to employees and the workplace.
WEALTH at work has provided five tips on how to help your staff out:
Understanding the needs of employees
Before any initiatives are implemented, employers need to understand the needs of their employees. The company said you should start by assessing the various cohorts of the employee population and considering their different needs. Younger groups may want help to save for a deposit for a first home, whereas that probably won’t be a priority for older groups, but a pension will be.
Develop an appealing benefits package
Look in to whether or not your employee benefits platform is being used by your workers. Make sure the benefits you offer are relevant and well-explained.
Help with the basics
Get employees to think about how they spend money on everyday items such as utility bills and insurance is essential. A great example of this is car insurance. It is extremely unlikely that you will get a better quote by remaining with your current provider than from shopping around, but many neglects to do this.
Good debt vs bad debt
Help employees understand the difference between good and bad debt is an important factor in finances. A mortgage is a form of good debt, as it is a stable loan. However, it should still be reviewed occasionally to ensure you have a good deal. Debt with high interest payments such as payday loans and credit cards can get out of control if they are not repaid quickly.
Financial education is a good way to connect employees with their finances and financial wellbeing. More and more employers are introducing financial education seminars to help their employees.
Jonathan Watts-Lay, director, WEALTH at work, said:
The link between debt, money worries and stress, lower productivity and absenteeism are increasingly recognised by employers and many are now looking for ways to support their employees.
Research we conducted last year showed 90% of employers believe that it’s becoming increasingly important to have a financial wellbeing strategy in the workplace. Financial education plays a key role in this. Proactive and interactive financial education can not only help develop understanding and encourage employee engagement, it can also act as a catalyst for behavioural change and action – resulting in added value for both employers and employees.