The Importance of Financial Wellbeing in the Workplace: Addressing the Benefit Mismatch

A recent report by Close Brothers has brought attention to the lack of emphasis on the financial wellbeing of employees by many employers, despite the ongoing cost-of-living crisis. The research revealed that employees are primarily focused on meeting everyday living expenses, saving for retirement, and managing mortgage and rental costs. However, their concerns are not being adequately addressed by their employers, who place little emphasis on supporting staff with their day-to-day financial issues.

The report also highlighted the disparity between employee needs and the benefits actually provided by employers. For instance, only 37% of companies offer employee shopping discount schemes, 26% offer holiday purchase/sellback benefits, and a mere 19% provide hardship loans and mortgage advice. This lack of alignment between employee needs and employer offerings is indicative of the inadequate attention paid to financial wellbeing in the workplace.

Furthermore, the report revealed a disconnect between desired benefits and those actually provided by employers. While 74% of employers offer pension benefits and 57% provide death in service, many other desired benefits such as critical illness cover and dental insurance are not adequately provided.

The report also pointed out an advice gap, with a high demand for financial advice among employees. Despite this, only a small percentage of companies offer financial advice as part of their employee benefits package.

Jeanette Makings, Head of Workplace Financial Wellbeing at Close Brothers, commented on the findings, stating, “The events of the last three years have brought about significant changes in working patterns and household finances. It is increasingly clear that workplace benefits and financial wellbeing programmes have not kept pace with these shifts. At a time when employees are more engaged than ever with their finances, there are significant benefits for employers who are responsive and adaptable in making changes to their workplace benefits and wellbeing programmes to better align with employees’ needs.”

In conclusion, the report has underscored the importance of addressing the benefit mismatch and advice gap in the workplace. Employers must take into account the financial wellbeing of their employees, especially in the current economic climate, and ensure that the benefits and advice they offer are aligned with the needs and priorities of their workforce. A more comprehensive approach to financial wellbeing in the workplace will undoubtedly result in a more engaged and content workforce.