Helping employees with financial management can ease the burden on HR professionals, some of whom may not be equipped to answer finance-related questions from staff.
Using a financial management expert delivers value for the employee and in turn frees-up HR resources. Recruitment is expensive, especially in the current climate of a talent drought affecting many sectors. Financial wellbeing can help with staff acquisition, retention and succession planning.
If more mature staff have a clearer understanding about when they can retire and have been assisted in planning accordingly, this can mitigate issues around demotivated staff ‘hanging on’ for retirement. Around 57% of people do not think they will be able to retire at the age they would like.
Employers want staff who are fully committed and involved in their work (certainly during their working hours). But that equilibrium can be destabilised if employees have financial worries and concerns that affect their mindset and wellbeing. Research shows that a supportive service that gives staff insight, guidance and education on their financial situation, results in a more engaged, happier, and productive workforce.
That in turn brings big benefits for the employer, helping organisations perform better and be more creative, while reducing staff turnover, sickness and absences. It also builds trust and a sense from the employee that their boss cares about them.
Inaction is not an option. It is estimated that companies are losing 9-13% of what is spent on payroll through poor productivity and absenteeism. So, for example, if a business employed 100 people at £20,000pa, the overall payroll would be £2m. A potential loss of 13% equates to £260,000. If a staff benefit cost of £24 per employee pa (£2,400 for 100 people pa) could reduce that loss by as little as 1%, the overall saving to the business would be £17,600. And many firms have found that the savings are significantly more than 1%.