Financial wellness goes beyond a trendy term; it’s an essential aspect of employee well-being. With most workers stressed about finances, employers recognise the need to offer financial wellness programs. In this article, we’ll explore five key areas that can lead to a healthier financial life, reduce stress, and increase productivity.
1. Superannuation
Superannuation, or “super,” is Australia’s government-mandated retirement savings plan. Employers contribute at least 11.0% (as at 2023) of an employee’s earnings into a super fund. This money is then invested, providing income for retirement.
Offering Super planning options can improve morale and loyalty. This could include providing options to salary sacrifice into super, or a company making matching contributions. It’s not just about saving for the future; it’s about building financial confidence and putting employees firmly in control of their financial journey.
- Provide and promote the use of Salary Sacrifice into superannuation.
- Offer Competitive Superannuation Packages: You can attract and retain top talent by providing attractive superannuation benefits, ensuring a skilled and committed workforce.
- Educate Employees About Superannuation Benefits: Employees who understand their superannuation benefits are likely to feel more financially secure, reducing stress.
- Matching voluntary employee contributions
2. Offer in-person financial wellness education
There is simply no better way to engage and educate than via face-to-face training. Workshops can take place in the common area of a business, providing information which is relevant to each particular workplace. Different experts can be used to speak about their area of expertise. Topics may include
- Tax planning - particularly relevant at tax time. Understanding what deductions are available may make a meaningful financial impact.
- Retirement planning - the adage rings true, fail to plan is a plan to fail. A strategy is the most assured way to improve financial wellbeing.
- Estate planning - this area of finance and law is one of the least understood areas of the financial journey for your average Australian.
3. Employee Discount Program
Employee discount programs may include indirect, non-wage benefits. These perks may include discounted gym memberships, deals on white goods or car buying services. Run by third party providers, these programs are an easy addition to the benefits offered to employees. The program adds to the value proposition for the employer and may be available at little to no cost
4. Ongoing Financial Education Champion
Financial literacy is important to achieve financial wellness. Offering financial education and planning services can empower employees to make informed financial decisions. A mistake that many businesses make is to start a program, link information on the company intranet and then get back to their normal routine. An effective program involves a ‘business-as-usual’ approach, with management buy-in and a champion who can assist in organising and promoting the various programs. Consistency is key!
5. Merit based benefits
There is often a correlation between productivity of employees and work-related stress. Build loyalty with employees while incentivising performance with rewards such as team building days, half day paid leave for hitting targets or a day off for birthdays.
Employee Financial Well-being: The way forward
Investing in employee financial programs is not just about employee benefits; it’s a strategic move that can deliver a fantastic return on investment for a business. Employers can create a happier, healthier workforce by addressing the financial stress that leads to absenteeism, productivity loss, and health issues.
Are you prepared to move forward in promoting employee financial wellness? Contact us today to discover how we can support your employee’s journey to financial success.