In the past few years, disruptive changes have occurred in workplaces across the globe. Because the pandemic has had such a profound effect on how organisations operate, they are compelled to reevaluate their workforce strategy. The well-being of employees has emerged as a top priority for organisations, which are constantly seeking a holistic and integrated approach to employee wellbeing. This encompasses not just the physical and mental health of employees but also their financial health, with the goal of equipping them to efficiently manage their finances.
Here are some ways in which organisations might help their employees feel more confident and at ease about their financial positions. After all, when employees are not stressed about their finances, they can devote more focus and effort to their work. Listed below are some effective means by which employers can assist employees in achieving financial health and stability.
* Companies must provide well-designed employee benefit programmes that go beyond the usual framework and allow employees to take care of their physical and financial health. This will have a favourable effect on employees and inspire them to perform better, given that the employer will take care of their financial needs. Companies could look at offering a flexible medical insurance benefits programme that enables employees to customise their health and wellness benefits to their unique requirements.
This will provide a shield against rising medical inflation and provide better coverage, allowing employees to reduce their out-of-pocket costs. Similarly, childcare can have an impact on a person’s financial health and may also keep them out of the workforce if they do not have a support system at home. In such cases, establishing a creche or reimbursing daycare costs can go a long way toward improving emotional well-being.
* It is crucial for organisations to highlight how existing policies and benefit programmes can help employees manage their personal finances. Many employees are typically unaware of the benefits/policies and infrequently utilise them. And most of the employees are unwilling to ask questions for clarity. Therefore, it is crucial for companies to educate and inform employees about these valuable benefits and policies. The key is to enable clear and frequent communication around company-offered benefits through a range of internal communication channels. Besides constantly updating the employees, it is important to actively seek their feedback on policies.
* Companies can also consider incorporating financial wellness education programmes for their employees. Prior to this, it is necessary to determine whether to begin with the fundamentals and then enhance the programmes based on employee feedback, or to construct tailored programmes at the outset. In both circumstances, the goal is to address the most critical challenges employees have and to instil confidence in their ability to manage their personal finances. Companies can take measures such as inviting industry leaders on various occasions to educate employees on opportunities to invest systematically to attain financial independence.
* Consider bringing a financial wellness programme into your workplace to help employees better manage their finances. Offer financial counselling services or resources for those who seek them. Training them on budgeting, debt reduction, stock markets, retirement planning, and more can boost an employee’s financial IQ. It will help them assess their current expenditures, set goals for the future, and make smarter buying decisions.
A comprehensive plan is required to alleviate financial stress and improve your employees’ financial wellness, but the investment will be beneficial. The commitment of the organisation to promoting financial wellness will improve the lives of their employees and positively impact the company’s bottom line.
(By Shalini Naagar, HR Director, India and Shared Services, Kuala Lumpur, Baxter)