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Key Ideas to Consider While Designing a Strong Financial Wellness Program

HR Tech Outlook | Monday, February 01, 2021

One of the first and simplest steps one can take to enhance the financial well-being of workers is to develop a clearer policy on bonuses, promotion structures, benefits and retirement plans.

Fremont, CA: For a lot of employers, the concept of a financial wellness program for workers can be a little bit of an afterthought. That is, in addition to having equal pay and a consistent policy on taxes and benefits, it can seem unnecessary to take any further action on employee finances. What is becoming increasingly evident, though is that companies need to take a more active approach to adopting financial wellness plans for workers.

Let us look at some tips that can help a strong employee wellness program:

Clarifying Bonus, Promotion and Retirement Plans

One of the first and simplest steps one can take to enhance the financial well-being of workers is to develop a clearer policy on bonuses, promotion structures, benefits and retirement plans. One may already feel that all of these things are clearly specified in the contracts that workers sign with their company.In most cases, though, they are not addressed in clear detail. It is relatively easy to draw up a kind of digital booklet each employee may refer to that clearly outlines the company's policy in all these areas. It is also up to the employee to take advantage of the details, but transparency in these areas will help and make it easier for any worker to handle his or her own finances more effectively.

Providing Financial Literacy Education

The idea of teaching financial literacy to workers can seem almost patronizing. But the fact is it's not meant to be thought of that way, and it can actually be incredibly beneficial. Financial education data from the U.S. suggests that people who learn about personal finance as children are more likely to do so than adults.However, as is the case in the United States, the United Kingdom rates as "low average" in teaching financial literacy. This dilemma has been cited as one of the reasons why personal debt is at such a high level in the United Kingdom and by implication, it is undoubtedly responsible for why many workers are struggling financially.

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