Enhancing Employee Financial Security through Comprehensive Support Programs
The 2023 Financial Wellbeing Research conducted by the Reward & Employee Benefits Association (REBA) and WEALTH at work highlights an expanding scope of employer-driven initiatives aimed at enhancing employee financial wellbeing. Employers are integrating various support mechanisms into their financial wellbeing strategies to counteract risks like high childcare and rental costs, consumer inflation, and rising energy prices. This comprehensive approach recognizes that improving financial literacy is crucial for mitigating these risks, noting a significant concern about the financial literacy levels among employees.
Shifting Focus from Pay Raises to Financial Education and Resources
Despite the pressures of inflation, only a small fraction of employers plan to increase salaries correspondingly. Instead, there is a substantial shift towards investing in financial wellbeing programs, with a predicted increase in spending on financial education and tools to help employees manage their finances more effectively. This trend includes a notable rise in the provision of independent financial education, guidance, and advice, with plans to expand services like financial coaching by over 200% in the coming years.
Providing Diverse Financial Tools and Encouraging Proactive Financial Management
The study also indicates growing employer support for various savings options, such as payroll savings schemes, employee share plans, and tax-free savings accounts like ISAs. This diversification in savings products aims to bolster financial resilience among workers. By offering these tools alongside educational resources, employers can empower their workforce to make informed financial decisions, thereby fostering a culture of proactive financial management and enhancing overall workplace productivity and satisfaction.