An introduction to workplace financial wellbeing

Inflation and the cost of living crisis are putting pressure on employees’ finances. As a result, employers are facing two problems at once.

First, falling productivity and engagement: 70% of people globally say they feel anxious about their financial situation, and people with poor financial wellbeing are seven times more likely to be unproductive and eight times more likely to produce lower standards of work.

Second, a missed opportunity: 74% of HR leaders say financial wellbeing is their top priority, but only 35% have a strategy in place.

What is financial wellbeing?

We believe financial wellbeing is an outcome. It’s that feeling when you’re in control of your money and prepared for your future. You make the biggest impact on someone’s financial wellbeing by giving them the skills and knowledge to act on their personal finances and their employee benefits. As a result, confidence builds, so people can take control of their money and feel more hopeful about their financial future.

Workplace financial wellbeing programs

Finance is personal. Everyone has unique circumstances, different needs, and varying goals. At nudge, we believe impartial financial education is the foundation for the ultimate financial wellbeing program.

Here’s an example of a company-wide financial wellbeing program, with products and services mapped to five financial benefit pillars. Financial education is a strong benefit in its own right, but it also underpins your other benefits, helping your people actually use them to build better financial resilience.

• Spending: discounts
• Borrowing: payroll advances and short-term loan options
• Guidance: access to financial advisors
• Planning: childcare support, enhanced parental leave
• Saving: 401(k) plans, employee stock purchase plans

All five sit on a foundation of impartial financial education.

We believe that once people see the benefits of financial education, they understand. When they understand, they act. When they act, they’re rewarded. When they’re rewarded, they come back. Once this cycle starts, it continues.

Underpinning your financial wellbeing program with impartial financial education will:

• Educate your people on the other benefits you provide
• Drive engagement with your other benefits
• Give you and your HR team access to rich data on what your people want, need, and are looking for

Get in touch and find out how you can start building the ultimate financial wellbeing program.