Should your employees’ financial wellness be your responsibility?

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You pay a fair salary, enrol your employees in a pension scheme and offer a competitive package of benefits. So surely you’re already doing enough?

The problem is that with final salary pensions looking like a thing of the past, and many people affected by rising student debt, employees today are faced with a number of financial challenges. In fact 34%[1] of employees say they’re distracted while at work due to financial worries – that’s nearly three times as high as in 2015. In the 18-30 age group, it’s 54%[2].

The effect on your business

If your employees are stressed or distracted due to money worries, that’s going to have a knock-on effect in terms of productivity and absence. And for your business, that also means a reduction in profits.

What’s the answer?

By giving your employees access to financial advice and guidance, you can help reduce this stress, making them more focused and productive while at work. Showing you care will also help them engage more with your business – and that’s important, as 38% of employees say they’d move to a company that prioritises their financial wellbeing[3].

Making it work for you

Employee financial wellness is about focussing on three key aims:

  • Reduce financial stress – 57% of people are concerned about the financial security of their family if they die or become too ill to work[4].
  • Increase financial literacy – almost a third of employees have taken time off work to handle financial issues[5] – and that represents a serious loss of productivity.
  • Improve financial behaviour – nearly 39% of employees say they’re living from payday to payday, and 38% regularly have trouble paying bills[6] – that’s a whopping increase from 18% in 2015.

By providing access to financial education, information on income protection and life cover, or advice on how to adopt healthy financial habits, it’s possible to improve your employees’ financial wellness. And that will have a positive impact on your business too. Read more about that here.

This is the first in a new series of blogs looking at the importance of employee benefits. To find out more about financial wellness, take a look at this useful infographic, or contact your usual Jelf consultant.

Employees' Financial Wellness infographic

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[1] Source: MetLife UK Employee Benefit Trends Survey, 2017
[2] Source: MetLife UK Employee Benefit Trends Survey, 2017
[3] Source: MetLife UK Employee Benefit Trends Survey, 2017
[4] Source: MetLife UK Employee Benefit Trends Survey, 2017
[5] Source: MetLife UK Employee Benefit Trends Survey, 2017
[6] Source: MetLife UK Employee Benefit Trends Survey, 2017

 

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About the author

Jo Elphick is Head of Marketing at MetLife in the UK.  She has nearly 20 years’ experience in employee benefits and is a big believer in the positive impact benefits can have for companies and the individuals that work in them.  In her role at MetLife she oversees the Marketing for all lines of the UK business, which as well as employee benefits includes individual protection and retirement and savings.