Creating stability in an age of conflict and difference

We live in a world full of volatility and change. To help your people navigate these challenges, we invited industry experts to share insights on how to support employees across the globe through times of instability. Kevin Bagdon, Director of Global Retirement and Financial Wellbeing at Latham and Watkins and Manon Coudert, Senior Benefits Manager at AXA joined our COO and Co-founder Jeremy Beament at nudge’s 2024 Global Financial Wellbeing Forum.

Here are some of the factors impacting your people’s financial wellbeing:

• Household debt: reveals that the highest indebtedness is found predominantly in the wealthy nations, correlating with high domestic government debt. Despite the significant growth and prosperity since 1945, particularly in the early post-war years and during the 1980s and 1990s, we must question whether this wealth is built on a fragile foundation of debt.
• Modest post-pandemic interest rate increases: have already caused considerable hardship for debt-laden households, and with governments also heavily indebted, individuals will need greater financial resilience.
• Global saving rates: for example in China, people save about 35% of their monthly pay. However, the general trend of insufficient saving, combined with aging populations, implies that people will need to work longer, face constraints in having children, have lower resilience to financial shocks, and find it more challenging to afford housing and other goal-based investments.
• Elections: 2024 is a significant election year, affecting over 50% of the global population and 60% of global GDP. Elections often bring legislative changes that impact personal finances, as seen with post-election legislation like the Inflation Act and the CARES Act in the U.S.

Despite volatility, there are positive trends.

Our global research indicates that:

• 94% of people seek financial security.
• 60% feel hopeful about their financial future.
• Financial education correlates with achieving financial goals, enhancing happiness, health, and productivity.

Our panel delivered their insights:

Global financial wellbeing strategy best practice

“Our approach began with defining financial wellbeing as the ability to make informed choices leading to short and long-term financial security. We then implemented a three-step program: upskilling our employees' financial know-how, enhancing communication about available benefits, and offering bespoke financial advice through a dedicated platform. This comprehensive strategy aims to ensure our employees are well-equipped to manage their financial health and wellbeing effectively.” Manon Coudert, AXA, stated.

“We aim to 'break the ice' and foster open dialogue, making ourselves accessible for questions and support in all our offices. Across countries, whether it's debt management or gaps in social programs, our strategy aims to fill these gaps globally with a unified blueprint, ensuring our benefits meet diverse, universal needs." Kevin Bagdon, Latham and Watkins, continued.

“Communication remains vital, and we utilize tools like total rewards booklets and lunch-and-learn sessions to keep employees informed about their benefits, aiming for continuous and timely engagement.” Manon Coudert, AXA, said.

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The importance of data

For Manon Coudert, AXA, data has been essential when creating AXA’s financial wellbeing strategy: "Data was key for us from two perspectives: the employees' point of view and the employer's point of view. For employees, we aimed to enhance their financial wellbeing through an easy, quick, and user-friendly digital financial checkup, which provides a concrete score and tailored articles. From the employer's perspective, aggregated data allowed us to design and adjust our financial wellbeing strategy based on the actual needs and expectations of our workforce.”

The same goes for Latham and Watkins: "We've focused a lot on data and recognizing different groupings, but it's essential to realize the diversity within those segments. Each group has unique needs, experience levels, and compensation levels. It's about understanding these needs and addressing them appropriately. For instance, our affinity groups, like first-generation graduates, allow us to target specific demographics across various levels within the firm” Kevin Bagdon continued.

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Best practices for financial wellbeing programs

Drawing from our extensive experience, here are our recommendations for creating a equitable global financial wellbeing strategy:

Align with organizational goals: Ensure your program supports specific goals and objectives, whether it's D&I, better retirement outcomes, or maximizing benefits.

• Deliver a global baseline: Ensure a consistent experience for all employees, regardless of location.‍
• Inclusivity: Cater to all employees, not just specific groups like those in debt or high-net-worth individuals. ‍
• Integrate with benefits programs: Leverage existing benefits to enhance program value. ‍
• Measurability: Track engagement and outcomes to adapt your strategy over time.