Address affordability concerns with employee financial wellbeing strategies
From healthcare and cost-of-living, to care and retirement, many employees are struggling to feel financially secure according to our latest research.
Over 1,000 UK employees told us their biggest health and wellbeing challenges. The findings reveal ‘affordability’ as a central concern across four key areas: healthcare, cost of living, care and retirement.
We'll look at how to help employees improve their poor financial wellbeing. And we'll highlight ways to help employees manage their money in these uncertain times.
1. Normalising conversations about healthcare and finance
Our research shows certain age groups are less confident they can afford healthcare. 31% of Generation X lack confidence in their ability to afford their own healthcare1. They are the least confident across the major generational cohorts.
Given the concerns associated with the declining health of an aging workforce.2 This demographic needs to feel supported and empowered to manage their health effectively. Implementing financial wellbeing initiatives can help normalise conversations about health and finances. These should include educational seminars and guidance on personal circumstances.
Creating a dialogue with your employees helps to create trust and a supportive working environment. Such an environment also allows employees to provide valuable feedback to employers.
2. The cost of living crisis and debt advice
Managing day-to-day expenses is also a growing concern for many employees. 41% of parents and 48% of caregivers worry about not having the income levels to meet their monthly bills1. Longer-term financial goals, such as buying a home, feel more and more out of reach among parents. 41% worry they won’t be able to afford homeownership1.
To make a meaningful difference, financial wellness programmes must go beyond education. It should provide tailored support that includes debt advice and financial literacy. Employers have a role in supporting employee financial wellbeing. They can invest in resources that maximise tax and National Insurance efficiencies. This helps employees stretch their pay further.
Offering employee benefits can also help relieve financial burdens. These can include: voluntary benefits, discount shopping portals or reward programmes. Employers can also partner with insurance providers, banks or mortgage brokers. This can provide employees with access to competitive expert advice and mortgage offers. Such offers are often not available in the open market.
3. Care and the role of employers
The financial strain of balancing work and caregiving responsibilities is also a concern. 43% of working parents and 47% of caregivers worry about affording quality childcare or eldercare1.
Employers may not be able to solve these challenges entirely. However, there is some financial wellbeing support they can offer to help with this, including providing access to:
- Trusted care providers
- Subsidised backup care
- Flexible working options
- Financial contributions
- Practical assistance.
Practical assistance may be a quick win for employers with flexible schedules. This includes a compressed workweek. This is the most valued ‘emerging benefit’ for Generation X and Millennials. Flexibility of where and when I work is the most valued ‘personal responsibility benefit’.
4. Retirement and financial wellbeing offerings
Retirement concerns are widespread. 41% of men and 53% of women worry about their financial readiness to retire1. Younger generations, particularly Millennials, show even greater concern, with 53% expressing worries1. The gender gap is most pronounced in Generation Z, where 39% of men and 60% of women are concerned about retirement finances1.
There are some effective ways to support employees in retirement planning. One of the best ways is through education and engagement in pension schemes. Employers can also combine tax-efficient savings options. Salary sacrifice (also known as salary exchange) can be combined with additional contributions. You can also give employees the ability to allocate their bonuses to their pensions. This can help employees maximise their retirement income.
Promoting workplace pension schemes and financial wellbeing offerings is perpetually important. It encourages employees in your organisation to invest in their future and wealth. It builds a strong culture that prioritizes financial confidence and financial resilience. This has become increasingly important for success in any organisation.
Services and resources that help employees can help your entire business. Reducing employee stress inevitably boosts their productivity. Investment in financial education and wellbeing programs also builds trust with your employees. This creates a more resilient workforce. Overall, it's clear that investing in financial wellbeing is paramount to your employees.
