To say that the year 2020 has been challenging would be an understatement. However, the knowledge, experience, and insights we’ve obtained, have in one way or another directed us on to some interesting paths! Far more enterprises now recognise the significance of providing financial wellness assistance to encourage their employees. With businesses being disrupted by the pandemic, it has become essential to identify the key areas in our HR domains that need the most attention and focus.
At this juncture, the sustainability of any business is highly dependent on employee wellness. And we’re all well aware of how financial stress impacts job performance. So it has become imperative for companies to incorporate the employee financial wellness trend that will rule in 2021. The trending financial wellness programs focus on addressing the real-world crisis and utilising technology to better the schemes.
Employee Financial Wellness Trends That Will Dominate In 2021
For all the employees’ financial struggles brought on by the pandemic, there is hope that new and trending employee financial wellness programs can help to benefit both employers and employees. Employee financial wellness is a concept referring to a class of services provided directly by the employer or through a third-party expert like EarlySalary. It is crucial to stay updated with the emerging trends in financial wellness, especially in times like these. Continue reading below for the employee financial wellness trends of 2021 that you might want to follow.
1. Increase in Educational Financing
Many employees today may be paying their student loans, a challenge only exacerbated in case they’ve experienced pay cuts, delayed salaries and the like. An education loan financing program will help your workers plan and strategise how they can repay their student loan debts. It will enable for them, a more convenient payment structure that can help them put their loans to bed quicker.
One essential benefit of such a financial wellness program is that by solving such a crucial need, we’re likely to see increased engagement and retention, perhaps more than any other tool.
2. Employees Will Seek “Real” Help
Assisting in financial planning is not an easy task to implement for any enterprise. Since there are several aspects to look into, employers sometimes overlook what their employees truly need. If you wish to know the most reliable ways to promote financial wellness, refer to one of our previous posts.
A major financial wellness trend to expect in 2021 is that employees will seek ‘real’ help. Providing advice on saving money and how to manage money is welcome, but it is best to avoid using an exhausting and comprehensive approach to employee financial wellness. That can often inundate employees. Instead, consider integrating employee financial wellness plans with mental and physical programs.
Instead of just merely zooming in on your employees’ finances, try to touch on their overall wellness. Go beyond the basics of only saving for emergencies. You could connect on a more personal basis by educating them on how to buy a house. Guide them on how they can reduce or eliminate their debts. You can teach them to save for major milestones like weddings.
3. A Clear Increase In Financial Wellness Programs
There will be a trend in the different types of employee financial wellness programs. Companies need to offer programs that focus on success, productivity, and employee engagement. This means employees will be hoping for financial wellness programs that utilise a holistic approach. Personalisation will play a significant part in this aspect too.
Since each employee has different needs, they will look for financial wellness programs that will help them attain their goals based on their specific requirements. Besides, with the pandemic’s mental and physical exhaustion, workers will want a program that will look into their mental and physical state. They might also want to join a program that deals with financial training and literacy. Such a program should educate them on dealing with economic challenges during hard times like a pandemic.
4. Analytics Will Take Over
More workers will clamour for technology-driven solutions that provide personalised assistance. An enterprise must ensure that their financial planning solutions utilise simple yet modernised tools and interfaces. With all the financial, mental, and emotional strain of COVID-19, workers want to experience the advantages of employee financial wellness without any hassle.
For example, employees wish for solutions that outline their present financial status. Workers also seek solutions that make them responsible for reaching their long-term goals. Your tools should emphasise personalised budget planners. You could also invest in plans that offer repayment calculators plus finance snapshots, along with other benefits. Take it a notch higher by investing in SMS alerts or live webinars. You can utilise these tools to update your workers about their progress.
Data analytics is the answer to shaping highly personalised employee financial wellness programs. Financial wellness programs can leverage data analytics to better understand employees, their state, their need for additional assistance, and so on. Such programs can also analyse behavioural patterns and give feedback to help employees recognise if they are improving their savings or financial management.
From the employers’ perspective, you can collect data to determine how well the employee financial wellness program is working. This data can further help in driving the program to offer improved components and functions in a way that meets the needs of the employees in a superior way.
Implementing these trends can be a challenge to most organisations, on account of a lack of specialised knowledge about employee needs and finance. It’s here that the role of a specialised financial service provider like EarlySalary comes into play. With various benefits to employees, like short term loans, educational sessions, and more, it’s possible for organisations to deliver wellness programs curated to individual needs and wants. Contact us or send a referral to your HR to end your financial wellness woes at once!
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