The latest Financial Wellbeing Research 2023, as reported by the Reward & Employee Benefits Association (REBA) in collaboration with WEALTH at work, illustrates a broad spectrum of employer-driven initiatives designed to enhance employees’ financial health. This strategic approach aims to mitigate various financial pressures that employees face, such as escalating childcare and rental costs, alongside consumer inflation and soaring energy prices. The findings underscore the growing awareness among employers of the importance of financial literacy, noting an increase in its recognition as a critical risk to employee wellbeing.
Shift in Employer Strategies: Education Over Pay Increases
Interestingly, while only 19% of employers plan to raise salaries to match inflation rates over the next two years, a majority (53%) are opting to boost their financial wellbeing expenditures instead. This shift focuses on equipping employees with the necessary tools and knowledge for better financial management through independent financial education and advice. The survey projects a notable increase in the provision of financial coaching, with planned offerings set to rise significantly from 12% to 41% among employers, highlighting a substantial commitment to fostering financial literacy.
Growing Support for Employee Savings and Financial Planning
In addition to educational resources, there is also a rising trend in support for various savings schemes aimed at building financial resilience among employees. These include pay-as-you-earn saving schemes, employee share plans, tax-free saving options like ISAs, and long-term incentive plans, with each option reflecting a commitment to long-term financial security for employees. Jonathan Watts-Lay, Director at WEALTH at work, emphasizes the positive impact of these programs on both personal and professional life, advocating for enhanced accessibility and utilization of these financial wellbeing benefits to spur meaningful changes in financial behavior among employees.
In conclusion, the push towards financial literacy and enhanced savings options within the workplace is becoming a cornerstone of modern HR strategies. By providing these tools and resources, employers are not only addressing immediate financial stresses but are also laying the groundwork for a financially secure future for their workforce, thus cultivating a more productive and engaged organizational environment.