Human resources departments today need to be competitive and diverse when it comes to the range of benefits packages they offer to both their existing employees and potential new recruits.
It is a competitive landscape out there in the war for talent and diverse benefits packages that move with the times and offer the kind of things that employees are interested in today can really make a difference when it comes to recruitment and retention statistics.
In this article, we're going to take a look at some of the reasons why financial wellness tools and financial well-being packages have become important to global employees. We will also examine some of the things that HR departments can do to incorporate financial wellness into their employee benefits offerings.
Employee concerns
It is a challenging working and personal environment today in which to operate and this has resulted in a significant rise in the number of employees who are stressed about their finances and tend to dedicate some of their time at work worrying about their financial situation. Naturally, this limits their well-being and consequently has a knock-on effect on their productivity rates.
It is a perfectly understandable concern-if an employee is stressed over their financial situation, then this is going to negatively impact their ability to focus on their day-to-day duties and ability to deliver their best performance in the workplace.
It is therefore hugely useful for these employees to have access to financial wellness tools and packages that can help them get a handle on their finances and plan their financial spending and saving more effectively. These employees are likely to appreciate any assistance that human resources departments can give them in this crucial area- it is a great way to foster a spirit of gratitude and loyalty, two things that can really help with retention statistics.
This will also be of interest to potential new candidates interested in joining a company-new recruits are on the lookout for diverse and interesting benefits packages available at multinational organisations and those companies making financial wellness a part of their offering are likely to be looked upon favourably.
Financial wellness programs.
Financial Wellness or financial well-being refers to an existing employee’s or potential new candidate’s overall financial health as well as the absence of financial worry or money related stress factors.
In previous years and decades, employee benefit packages have focused mostly on physical health in the form of discounted gym memberships. Recent years have seen a huge rise in focus on mental health, so HR departments have begun offering tools around stress management, meditation and mindfulness as well as ensuring global employees have access to confidential counselling.
Now, things have evolved again and there is a focus on financial wellness programs and financial well-being because it is simply one of the biggest causes of stress in any employee's life. When it is not addressed, there tends to be a corresponding increase in employee absenteeism and lower productivity rates-so it is not difficult to see why an employee wellness benefits package is being prioritised at human resource departments at multinational companies-there is a clear business justification for it in terms of employees' financial well-being.
A financial wellness package is a programme designed to help employees better manage their financial resources and reduce personal stress levels related to their personal finances. The focus is on financial health education, and this can take the form of coaching, banking tips and money management advice. Financial wellness tools in the form of a platform that enables employees to enter facts and figures about their finances and savings plans are becoming more common. These financial coaching tools help employees to predict their income and expenses for the months and even years ahead, helps them to see when expenses are likely to jump during specific times of the year and give them an overall sense of control and confidence when it comes to their day-to-day personal finances and financial goals.
Employee self-service in payroll
Payroll technology has a role to play in employee financial well-being and employee financial wellness programs. A self-service employee portal is something that can offer employees instant access to their payslips and financial information at any time they want to view it and on any device.
Automation is a factor here- if financial information such as payslips and year-end tax information can be automated and delivered into an employee self-service portal, this can really help. Companies need to ensure that they are leveraging automation technology to ensure easy online access to payslips for employees.
When an individual employee is stressed about their personal finances and need access to their data, the last thing they want to do is have to wait several days before they get a reply from the HR department to an e-mail they've sent requesting data. It is a far better scenario if they are able to simply log on to their personal device from anywhere in the world and check their payslips and personal financial information.
HR options for employee financial wellness
There are some things that senior HR leaders and managers can do to introduce financial wellness tools on a phased basis to their international workforce. A financial health check workshop is a good wellness solution place to start. You could approach a knowledgeable member of the finance department or simply invite a personal finances expert to come in as a guest speaker and provide employees with useful tips, guidance, and advice on how to best manage their money on a daily, weekly monthly and annual basis. Budget planning, credit cards, finance apps and savings plans tactics are things they could focus on for better financial literacy.
You should never overlook the fact that despite a hugely educated workforce, personal finance management techniques are rarely taught in school or university. Even the most accomplished employees might not be aware of things they could be doing better when it comes to their personal finances.
While it is something that depends on the available budget, it is possible for global organisations to partner with dedicated financial planning organisations who focus exclusively on personal financial management. They can offer employees individual one to one advice and services that help them better manage their finances.
Financial wellness software solutions or online tools are becoming increasingly popular, simply because they are the easiest to manage and the employees can leverage them on their own time. These could take the form of customised training and e-learning modules as well as financial calculators that enable employees to really get a handle on their finances, specifically when it comes to getting an overview of their monthly income and expenses.
Student loan debt is often a major financial challenge, especially in the United States so some organisations are offering advice and support when it comes to handling this debt. Some allow those impacted the opportunity to allocate a specific amount of their paycheck towards reducing the student loan.
HR executives, managers and leaders who dedicate the time to introduce financial well-being packages to their organisations are showing real foresight and consideration for the global workforce. The reality today is that many people are struggling with their daily finances while others are looking for solutions when it comes to managing their debt. Other employees may be interested in planning for the future but simply not know the best way to go about it and there is also a section of the workforce that is interested in retirement plans in a confusing and ever-changing financial landscape.
A large portion of any global workforce could therefore benefit from financial wellness tools for a range of different reasons. Global organisations that take the lead and introduce employee financial wellness tools and financial wellness benefits packages can have a genuinely positive impact on employee well-being, productivity, mental health and satisfaction rates. The inevitable result of this is positive recruitment statistics and high employee retention rates, so it is well worth considering.
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