Financial Planning as an employee benefit has risen in popularity in recent years while becoming more accessible to more people.
Planning your future finances is one of those things you know you should do but is often not prioritised or sometimes forgotten about altogether.
There can be a number of reasons for this, the lack of expert advice and financial support being one of them.
Introducing Financial Planning to your range of benefits helps to raise awareness and remind people of its importance, and it plays a key role in your health and wellbeing strategy. Financial Planning is an important benefit right now for several reasons.
- Financial wellbeing is the number one concern for employees, with later life finances and retirement provision in second (The DNA of Financial Wellbeing, Neyber 2020)
- 1 in 3 employees have felt stressed and/or anxious due to their finances (The DNA of Financial Wellbeing, Neyber 2020)
- UK GDP fell a record 20.4% (April 2020 to June 2020) (ONS)
- Households in the poorest fifth in the UK have seen a fall in median household earnings of 15% (around £160 per month) (IFS)
This makes the Financial Planning employee benefit ever more important, along with financial wellbeing employee benefits as a whole.
A range of financial wellbeing employee benefits that genuinely supports your employees with their financial situation is arguably more important than ever.
Thankfully, implementing this is easier and more cost-effective than you think, which we’ll explain in more detail further on in this article.
For now though, let’s consider the importance of Financial Planning as an employee benefit.
What is a Financial Planning employee benefit?
A Financial Planning employee benefit helps bring expert financial advice to your staff through your employee benefits.
This can be delivered in a number of ways depending on how your Financial Planning employee benefit is set up.
There’s a whole range of financial advice available through this type of benefit and employees can take advantage of it whatever financial situation they find themselves in.
For more, take a look at Financial Planning as part of our financial wellbeing employee benefits.
Demonstrating a commitment to employee financial wellbeing
Providing Financial Planning as an employee benefit demonstrates a strong commitment to employees’ financial wellbeing.
It shows a company values what’s important to staff and is willing to invest in ensuring the long-term financial strength and stability of employees and their families.
It can help strengthen the values of an internal brand and shows stakeholders and the wider world how the company is taking action to support a pressing need for employees.
This helps to support recruitment and reduce turnover, which can be two huge costs for employers.
Improving employee mental wellbeing
As mentioned, poor financial wellbeing can often lead to feelings of stress, anxiety and depression.
The mental wellbeing effects of poor financial wellbeing can lead to poorer spending choices and in turn a worsening financial situation.
It can be a vicious circle and so it’s important for anyone to target the root cause of any financial problems as early as possible.
A Financial Planning employee benefit therefore can be a vital lifeline for employees by providing expert advice when it’s needed most.
Stress, anxiety and depression can affect absenteeism, employee turnover and productivity.
A Financial Planning employee benefit not only helps support employee financial wellbeing but in turn supports their mental wellbeing, directly affecting their performance at work and their relationship with the company.
An alternative to pay rises
Often when looking to improve retention employers turn to pay rises. In the current climate, this isn’t as feasible for as many companies as it may have been before.
Companies now need a more measured approach to reduce employee turnover in the long-term.
A Financial Planning employee benefit can be a key part of this by helping provide a strong foundation to employees’ finances in the long-term.
We know how important good financial wellbeing is to good mental wellbeing and how mental wellbeing can affect employee turnover.
Often, when an employee is faced with mental health challenges, they’ll look to change their job as a way to get out of a rut.
Helping employees address these mental health challenges by supporting them with their finances, companies can reduce turnover.
Of course, poor mental wellbeing isn’t always caused by poor financial wellbeing and financial wellbeing benefits are by no means a cure-all.
However, by ensuring employees are in the best place they can possibly be with their finances, a company can reduce the risk of poor finances affecting employees’ mental health.
Providing a key competitive advantage in recruitment
Employee benefits help provide a key competitive advantage in hiring talented new recruits.
A range of benefits that genuinely meet the needs of employees can make an important difference in recruitment.
Research by One Medical shows that 69% would choose one company over another if it offered better employee benefits.
It’s one thing offering ‘better’ benefits but offering ‘relevant’ benefits is just as important.
Employees need employee benefits that help them meet their most pressing needs right now and a Financial Wellbeing employee benefit may provide just that, helping create a real competitive advantage when it comes to recruitment.
Read more on recruitment in our guide to modernising your recruitment strategy in 2021.
Other key advantages for employees
Along with the benefits already mentioned, here are some more key benefits employees get from a Financial Planning employee benefit.
- This type of benefit gives employees greater peace of mind over their finances which is a huge boost to their mental wellbeing
- Financial Planning helps give employees greater clarity over their finances
- With low interest rates on savings, Financial Planning can help employees invest and save which will be a key priority for many.
Learn more about the Financial Planning employee benefit
At caboodle, we offer one of the widest range of employee benefits you’ll find anywhere and Financial Planning is just one of many wellbeing employee benefits we offer.
For more on how the Financial Planning employee benefit could work for your business, get in touch today and we’ll run through the scheme in more detail with you.