In response to the majority of employers saying it is their responsibility to support staff with financial wellbeing, Aon has released their top tips for bosses to assist in their employees’ financial wellbeing.
The global professional services firm report ‘Aon 2019 Benefits & Trends Survey’ shows that 62.5 per cent of employers feel it is their responsibility to help staff in regards to financial wellbeing. As well as 98 per cent wishing to improve employee engagement in the subject.
The top tips from Aon are:
- Adopt a holistic approach: The company believes financial wellbeing should not only relate to financial aspects in the workplace like pensions and bonuses but also cover personal finance.
- Use data: Focus groups and surveys are a way to find out what employees want. Bear in mind that some workers may not want to discuss financial issues in a focus group.
- Focus on a framework: Aon recommends the ‘4 P’s’ framework – Prepare – build financial knowledge, Plan – build a short, medium and long-term financial plan, Protect – prepare for the unexpected and Preserve – understand the financial needs, perhaps retirement transitioning and managing an existing pension fund.
- Be practical and relatable: Aon believes by using the ‘4 P’s’ framework employers can focus on key employee areas to benefit them such as budgeting, financial goals, retirement planning and preventative action against worse-case events.
- Use technology: Technology gives employers the opportunity to enhance their financial wellbeing strategy with real-time information, holistic overview, data-driven insights, cross-generational appeal and improved user experience.
- Engage champions: Peer to peer champions can be an effective way of communicating financial wellbeing support.
- Take an agile approach: An agile approach enables the ability to make improvements or change direction with little impact to upcoming plans and budget.
Martin Parish, a financial wellbeing specialist at Aon, said:
Financial wellbeing is a key component of an individual’s overall wellbeing, which also includes physical, mental and social wellbeing. It goes beyond just having enough money in the bank – it includes good financial management and having the appropriate tools to facilitate financial decisions. It’s the peace of mind that comes with knowing there is enough money for both present and future financial commitments.
As one of the core wellbeing pillars, employee financial wellbeing is a growing concern for businesses. Financial Conduct Authority figures show that 67 per cent of employees are currently struggling financially, which can have a detrimental impact on both their own health and business performance. It’s no wonder so many employers want to support their employees.