Financial planning as an employee benefit could help your employees with their number one source of anxiety in life: money. Personal finances claimed the number one spot on the list of the top five causes of stress for Australians. Financial insecurity can do more than cause sleepless nights. Constant anxiety about the state of financial affairs can trigger debilitating mental and physical health issues which can have a negative flow on effect to your business. Employees who struggle financially are more likely to miss work. Even when they do show up, they may be so distracted by their financial troubles that it affects their productivity and performance.
What can employers do to help reverse this growing trend toward financial insecurity? Considering offering financial planning as an employee benefit is an important place to start. Along with paid time off, education advancement programs and childcare subsidies, employers may want to toss financial planning into the mix.
Benefits of financial planning for employees
Paying for financial planning services costs money. Employees already under financial pressure may not have the discretionary funds available to seek these services on their own. Financial wellness programs provided by employers can help fill the gap — educating workers about debt, investing, and planning for retirement.
When employers offer their employees the opportunity to meet with financial planning experts during the workday, it is a win-win situation for both. Financial planning helps employees reduce their stress about money and, on the other hand, gives employers access to healthier, more productive employees.
Reduced stress and better health are the biggest benefits of financial planning for employees, but not the only ones. When employees have access to financial advice and education, they have more control over their finances, gain confidence in their futures, have stronger relationships and sleep better at night.
Benefits of financial planning for employers
We already know that financial planning as an employee benefit makes for a happier, healthier, and more productive workforce. While all of these will benefit employers, they are not the only reasons organisations should consider adding financial planning to their list of employee benefits. Here are seven more advantages employers experience when offering financial planning as an employee benefit.
1. Attract top talent
As businesses struggle to find staff in the post-pandemic world, employers need to get more creative to attract and retain top talent. Adding financial wellness benefits to an employment package is one way to stand out from the competition.
2. Retain healthy employees
It can cost Australian companies nearly $19,000 to hire one employee. With recruiting expenditures on the rise, organisations are seeking new ways to keep their employees. A robust employee benefits package that includes financial planning services is one way that employers can enhance workforce retention. Moreover, it helps to ensure the mental and physical wellbeing of their retained staff when they do not have to worry about personal finances on and off the job.
3. Decrease absenteeism
When workers become stressed out about their personal finances, it can lead to some unpleasant health issues. Anxiety, depression, headaches, inability to focus, poor judgment and recurrent illness can increase any time a person is under prolonged stress. Unwell employees frequently call off work. Employers can decrease absenteeism rates by including personal finance consultations for their employees.
4. Increase presenteeism
No, this is not just the opposite of decreased absenteeism. Workers who do not worry all day long about their financial situations have increased presenteeism while on the job. Not only does increased presenteeism equal greater productivity, it also means workers are less likely to become so distracted they risk injuring themselves or making critical mistakes that can impact business operations.
5. Improve work performance and productivity
Workers who can focus on their assigned tasks — instead of obsessing about money troubles — improve their work performance and productivity. Employers can help workers stay attentive, alert and innovative at work by offering the financial expertise they need to get their personal finances in order.
6. Increase engagement and relationships
Employees who do not stress about personal finances every moment of the day enjoy more engagement with their coworkers. When money troubles are not front of mind, personal relationships also thrive, which can boost employee mental health — in turn leading to more positive, productive employees.
7. Boost morale
Workers who feel that their employers care have improved morale and job satisfaction. When companies really put the “human” in their Human Resources departments, they can boost employee job satisfaction and the overall opinion workers have about their roles within a company.
Tips for offering financial planning as an employee benefit
Once companies come around to the advantages of offering financial planning as an employee benefit, they’ll need to work with professionals who can help design and implement the services into their employee benefits package. Organisations need to ensure their employees receive uncompromised advice that is right for their individual needs. Partner with a financial planning company that does not accept commissions and that charges a fee for their service or time instead. Also avoid any financial planning companies or solutions that rely on cookie-cutter, computer-generated strategies that provide generic advice employees could access on their own.
A financial planning component to employee benefits packages is only as good as the financial experts behind it. Seek expert advice from financial industry leaders with years of knowledge to provide financial security and peace of mind to their employees.
What Financial Spectrum offers
Financial Spectrum offers financial advice benefits packages tailored to the needs of their business clients. From small businesses to large corporates, we have solutions for every organisation interested in making financial advice and education a part of their employee benefits offerings.
At Financial Spectrum, we can:
- Work with employers to create custom packages for employees
- Provide financial coaching consultations to support employees experiencing financial stress (similar to EAP)
- Deliver money management workshops, such as budgeting and cash flow management, debt reduction strategies, making the most of super and where to start investing
- Provide financial planning services as a packaged benefit or performance reward
If you’re interested in working with us to provide financial planning components to your employee benefits packages, schedule a phone consultation with Brenton Tong.