17 March 2021
Financial wellness has acquired considerable importance in the contemporary times, from the perspective of both the employer and the employee. It is because of its positive impact upon all stakeholders involved that a financial wellness programme is being called as the must-have benefit of the recent times for any kind of workspace.
While it is easy to say that financial wellness is one of the most important goals for the individual, it also cannot be ignored that the dimension of financial wellness can mean different things for different people. Understood in the most basic terms, financial wellness essentially means the financial freedom to make choices. However, it is very difficult to make a one-size-fits-all solution when it comes to financial wellness. In fact, in the post COVID times, the contours of financial wellness are changing and the 2021 trends exhibit that things like Education financing et al are gaining more importance with respect to financial wellness.
The attainment of financial wellness for all the employees in an organisation becomes even more difficult when the workforce is not completely homogeneous. In fact, different employees have different expectations from a financial wellness programme even if they are working in the same workspace. Therefore, it can be a difficult task to formulate a programme which caters to the financial wellness goals of the workforce all across different generations.
However, what is uniform is their need to have a sound financial wellness programme. In fact, according to a report by PwC in 2020, not less than 75% of the baby boomers as well GenX and millennials agreed to the fact that they would be attracted to a different company in case they show more concern about their financial well being.
Hence, in order to effectively take care of every person’s financial wellness needs, the following tips can be kept in mind by the organisation:
According to a PwC report in 2020, even though a majority of GenX and Millenial workers stated that job security is the most important factor when it comes to financial well being, for the baby boomers it was found to be lower healthcare cost and better healthcare facilities. Therefore, it is imperative for the organisation to take care of the expectation of both generations while planning a financial wellness programme. It is of utmost importance to see and measure your employee’s financial wellness before you start planning anything.
DIfferent generations in the workspace will naturally have different health-related concerns and goals. While for an average GenX or millennial worker, it might be to stay fit, have a toned body, and get time to work out regularly, the same might not be the concerns of a Baby Boomer worker. It would rather be having rebates on healthcare services, tie-ups with hospitals, among other things. Therefore, it is important to take these factors into account while making a financial wellness program.
Repayment of the student loan is one of the most pressing issues for the younger generation in the workspace, in fact, as many as 80% of this generation touted it as the most important factor stopping them from achieving their financial goals.
However, for the older generation in the workspace, post-retirement benefits and easy housing loans, among other things might be of more significance. Therefore, it is important to understand their financial goals and liabilities in order to be able to effectively address their financial wellness.
It also helps to understand their position when it comes to savings so as to combat the problem of financial stress. In fact, according to the PwC report (2020), as many as 67% of the GenZ employees had less than $1000 in savings while the number was significantly lower in the Baby Boomers (37%).
Clearly, it is important that in contingent and emergency situations, more importance is given to the former over the latter when it comes to helping their plan their savings and they in fact need more robust and comprehensive training with respect to personal finance management.
Having seen the kind of divergences and the expectations that exist between the different generations in the workspace, it can be conclusively said is that it is very challenging for any organization (especially startups or those with limited resources) to formulate a financial wellness program that fits the bill for any and all employees. To know more about some strategies as to how you can make a good Financial wellness program, please read one of our earlier blogs here.
While you can definitely take a leaf out of the book of several established brands with respect to their financial wellness program, it will also take a lot of effort to personalize to fit it into your budget and needs.
If the magnitude of the task is worrisome to you, quit worrying and visit our website. We, at EarlySalary, provide several financial services school fee financing, instant personal loans, medical emergency loans, and a plethora of other services with no hassle and at just a click of a button. What are you waiting for? Partner up with us and take care of all of your orgnanization’s financial wellness needs.
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