How employers can harness technology to help employees achieve financial wellness

Tapping one’s credit card has made paying for things super convenient. But there’s one major drawback to this contactless payment method using future money: it makes spending money a bit too easy and individuals can get carried away. And yes, that includes your employees who may already be in a state of financial crisis given pandemic-related economic uncertainty. If you’re wondering what you can do to help employees achieve financial wellness, this Pacific Prime UK article will explore the role of technology. 

A notable increase in financial stress 

Before we dive into the role of technology, let’s explore financial stress for large segments of the workforce. According to a financial wellness survey from PwC in 2021, almost two-thirds of employees in the US said that their financial stress has increased since the start of the pandemic, and these employees are four times as likely to have experienced a decrease in overall household income and find it difficult to meet household expenses on time each month. 

Across the pond in the UK, things are just as grim. Bloomberg Quint reports that UK household financial stress is rising, and John Pears, CEO of Lowell UK, a debt collection firm, explained that:

“Communities are less financially resilient than before the pandemic. That has only continued to rise this year, with Lowell seeing further growth in credit use as government support has slipped away.”

Spillover effects of financial worries 

Given the mind-body connection, it’s no surprise that employees’ financial worries can’t be viewed in isolation. It can impact employees’ mental health, increasing absenteeism and presenteeism at work, and also their physical health. Through a loss of productivity and/or a rise in turnover rate, and increased costs associated with group health insurance usage, employees’ financial worries can have an impact on your bottom line. 

So much so that many employers are now redefining how they view health. It’s no longer just an absence of physical illness, but a much broader definition taking into account physical, mental, and financial aspects. Likewise, employee benefits packages will also need to reflect this holistic approach to health and wellbeing as outlined in our free-to-download Global Employee Benefits Trends Report 2021. 

4 tech-related financial wellness benefits to offer 

Now that we understand that employees’ financial wellness is on the rise, the impact it has on employers, and the evolution of employee benefits packages, let’s look specifically at some examples of tech-related financial wellness benefits that you can offer your employees. Particularly for the younger, tech-savvy generation, the use of technology can increase employee engagement. 

1. Round-the-clock access to financial knowledge

Instead of offering training courses to help employees understand how to manage their money, why not use technology platforms? This gives employees (and their family members) round-the-clock access to relevant and unbiased financial knowledge, and is also more cost-effective for employers who have a large workforce. What’s more, training courses delivered via technology platforms also give employees privacy that public workshops or presentations can’t. 

2. Personalised, AI-driven financial planning tools

Once employees have the required financial knowledge, they can take ownership of their financial planning, which involves budgeting and setting short-, medium-, and long-term goals. Digital tools that can track spending, manage debt, and build savings can be incredibly useful in this regard. In fact, those that are powered by AI can even create personalized road maps by analysing employees’ financial data and factors like age or life goals and creating realistic milestones for spending, debt payment, automated investing, and savings. 

3. Emergency funds that can easily be tapped into

Despite employees’ financial planning and their best efforts, emergency funds for one-off large payments may still be required. To ensure that employees don’t have to seek out high-interest loans to dip into their retirement savings, employers can provide emergency funds that employees can easily tap into and pay back from their paychecks. While this is strictly not tech-related, the process of tapping into the funds can be simplified and automated to reduce the paperwork and red tape.  

4. Virtual consultations via employee assistance programs (EAPs)

To supplement digital platforms, tools, and emergency funds, providing human support also remains essential. From a live chat option to a virtual consultation with an expert, employees can reach out if they have more complex financial questions. If and when things get tough, providing counselling and crisis support via Employee Assistance Programs (EAPs) also goes a long way in ensuring that employees remain in a healthy state of mind and commit to making long-term behavioural changes. 

For all things employee benefits, get in touch with Pacific Prime UK today!

Whether or not you already have financial wellbeing as part of your employee benefits package, you’re more than welcome to get in touch with Pacific Prime UK. As a global health insurance brokerage and employee benefits specialist, we have over two decades of experience helping employers of all sizes and industries design and implement corporate health insurance and employee benefits programs that meet the needs of their workforce. We use a tailored, technology-driven approach and have won a number of awards for this. 

Arrange a FREE consultation with a member of our corporate team today!