Many employers appreciate the value of financial advice for employees, but how many integrate it into their business and reap the benefits?
Dismissing financial advice in the workplace as an additional outlay, in the long run could actually cost more. Helping employees get a better handle on their finances can contribute to positive results for the employees themselves and in turn, the whole business.
It may seem reasonable that an employer wouldn’t want to get involved in their employees’ financial affairs, especially at a price, but this is unfortunate as employers are actually well placed to influence their workforce into making better financial decisions.
An ageing – or resistant workforce?
Without a suitable retirement plan in place, employees are likely to have to work longer. This can result in an ageing workforce with many individuals reluctant to be working at all, leading to:
Encourage, evolve and nurture your workforce
A valuable employee benefit such as financial planning can attract key talent, bringing with it the right attitudes and enthusiasm employers need to help fulfil ongoing corporate objectives effectively.
Financial advisers can help employees plan ahead, help them see the value in saving sensibly and help them understand their pensions - identifying the right investment strategy for their retirement plans in the process.
If salary increases or greater pension contributions are not viable options for boosting employee motivation, financial advice is a well worthwhile consideration and need not be costly.
Helping hang up hats
Good financial advice is particularly relevant at the point of retirement. An employee might wonder whether to take their retirement benefits in one lump, or would an annuity make sense?
If their employer can assist at this crucial time, not only does it demonstrate goodwill and gratitude to the individual concerned, it promotes the business as caring for its employees beyond the employer’s needs – something that will reflect well on other employees.
Stress and money…linked?
As communities and the government continue to break down the stigma surrounding mental health, stress remains a leading cause of absenteeism, particularly affecting the young and those working in “white-collar” jobs. Unsurprisingly, the underlying root cause of stress often relates to personal finances.
Studies have shown that concern over money can account for a significant percentage of stress-related time off work. Companies providing a good employee wellness package, along with advisers to help employees make the most of what is on offer, can reduce financial concern among employees and help ease worries.
Healthy mind…and body
Additional to financial advice, income protection and private medical insurance can support physical health and help put minds further at ease. Pensions help people plan for the future and a life insurance scheme offers comfort in the knowledge that loved ones will be taken care of should a worker become terminally ill or die.
Don’t let competition steal the success
Good financial advice in the workplace can set businesses apart from competition. Most employers do see the value of financial advice for employees but most won’t pay for it, which gives those that do a competitive advantage in recruitment and retention. Investing in financial advice can lead to greater employee engagement which, in turn, increases employee loyalty and longevity.
By developing a work environment where employees are less stressed and more focused on their work, not only can immediate productivity be greater, investment in employee training and development can reap significantly greater rewards, as employees are compelled to harness new skills within the business that trained them, rather than seeking new and more attractive opportunities elsewhere.
While there’s strength in numbers, a business is only as strong as its workforce.
For information about our Corporate Services or for a review of your existing employee benefits, please contact us.
Tuhin Ahmed BA (Hons), APFS, IMC, CertPMI
Chartered Financial Planner
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