Managing money is something that a lot of people struggle with. Whether you’ve got lots of it or just a little, the number in our bank accounts impacts every part of daily life. However, for something that is so integral, it’s a subject that many people struggle to raise, especially when needing to ask for help or advice.
Companies have a unique opportunity to help their employees increase their financial literacy. By removing the stigma that often comes with talking about money and offering financial information sessions, as well as a strong benefits package, businesses can boost financial wellness both inside the business and in employees’ personal lives.
In this post, we share three ways HR teams can get involved.
Share information
Every person is different, and every financial situation is different too. There’s no blanket rule that works for everyone, which is why the huge variety of financial information available can often be very confusing.
Companies can help employees by organising lunch and learn sessions with experts, or even offering yearly one-to-one sessions. Whilst these sessions won’t offer personalised financial advice, they can be a good space for people to ask more general questions or gain understanding about a topic such as credit in a more accessible way.
If you have a regular company-wide meeting, it can sometimes be a good idea to get a guest speaker for these calls. When a meeting is optional, it’s easier for employees to feel that they don’t have time to attend, whereas if it’s in an existing meeting slot, they’re more likely to be there.
Offer a good pension plan
UK employees contributed a total of £12.8 billion to their pension pots in 2022/2023, an increase from the year before. Especially for young employees, retirement might feel like a long way off, but adding to a pension pot early on means you can reap the benefits of compound interest. Companies have an opportunity to educate their employees on the importance of planning for their retirement, regardless of their age, via their pension benefits.
Additionally, by offering a good pension plan, you’re showing your employees that you’re invested in their long-term future at the company. It’s a benefit that an increasing number of people are looking for when moving jobs, so being competitive is in your best interest, as well as being the right thing to do for your team.
Offer flexible benefits
As we’ve discussed, everyone’s situation is different. Some people may really value gym discounts and a yearly home office budget, whereas others would prefer a slimmed-down benefits package with more money going into their take-home pay. Healthcare packages can often be scaled up to include partners or children, or you may have a generous holiday allowance that is going unused by many of your staff.
Offering a range of flexible benefits, which employees can choose from at the start of the tax year, means that people feel in charge of their finances and only spend on what they need. Whilst the practicalities of doing this will depend on the size of the business and the size of your HR team, you may be able to start by making some benefits opt-in or opt-out, before increasing your offering the following year. Once you’ve set out your package, be sure to educate employees on the options available to them via a staff handbook or a company-wide update; this key information should also be discussed as part of the onboarding process.
This blog was written for HRTech247 by Athena Addison.
