Gethin NadinGethin NadinJanuary 15, 2020
money-1885540_1920-1280x857.jpg

9min1367

This article was co-authored with John Petter, CEO of HR software provider Zellis.

 

It isn’t a new discovery that money worries have a direct impact on your employees; financial concerns are a serious cause of mental health issues, which themselves result in increases in both absenteeism and presenteeism, reduced engagement and productivity, and all manner of personal problems that make day-to-day working life a struggle.

Unfortunately, the prevailing social and economic conditions have made money worries increasingly common. Only rarely are employees, especially amongst the younger generations, faced with one specific financial challenge. It’s much more likely they are dealing with some dangerous combination of home ownership struggles, slow wage growth, too much borrowing, being a victim of a scam, and worries over their retirement savings.

This is all underpinned by low financial literacy, which Andy Haldane, Chief Economist at the Bank of England, has said is actually getting worse in the UK. Financial education is supposed to start in school, but many students say they don’t receive it. And once they leave the school system, most people aren’t exposed to any kind of financial literacy education unless it’s self-taught.

What role should employers play in addressing this issue?

The answer is that employers should take a greater role in increasing literacy and awareness. Currently less than half (44 percent) of UK employees are offered financial education, according to research from Zellis. The traditional view that personal money matters shouldn’t be discussed in the workplace is still pervasive. In fact, according to The Close Brothers, the majority (58 percent) of UK employers don’t have any sort of financial wellbeing strategy in place.

But let’s look at it from a different perspective: what’s the central transaction in the relationship between an organisation and its employees?

That’s right, it’s pay and reward.

So it only seems natural that the employer should play a part in helping employees make their money go further, by explaining how key concepts like benefits, tax, and pensions actually work. Zellis’ research indicates that this is currently an underserved need. They found:

  • Most (58 percent) employees don’t fully understand their payslips
  • Less than a quarter (24 percent) check their statement every month
  • Around a third (32 percent) say they don’t have enough information about benefit choices
  • A quarter (25 percent) say the same about their pension options

And while trust in traditional financial institutions like banks is at a low point, employers can step in to provide much needed support and education. But we must make it clear that they shouldn’t try to provide financial ‘advice’, which is something regulated, professional, and typically relates to money choices (i.e. investments) that involve a degree of risk.

What practical steps can organisations take, then, to support employees – and what are the potential business benefits? Here are a few quick ideas:

Run financial literacy programmes

These could be created internally, or you could bring in an external expert to help. They should be inclusive of different ages, background and levels of knowledge, and could cover topics such as how to understand a payslip, how to access benefits, how the tax system works, and how to manage your pension.

Closing the awareness gap can make a huge difference. Consider, for example, the hundreds of thousands of low-wage employees who don’t claim Universal Credit simply because they don’t know they are entitled to it. An organisation that helps to bring this information to light can really change the lives of its employees.

Communicate benefit choices 

Your benefits package can make all the difference when it comes to attracting and retaining talent. However, organisations struggle with low levels of employee uptake either because the benefits on offer are not deemed relevant and useful, or because not enough is done to promote them and explain their value.

A solution is to involve employees closely in the process of designing a benefits package, improving both relevancy and awareness. Benefits awareness can also be boosted using a ‘total rewards statement’, offered as part of or alongside the payslip, which shows the total value of all pay and benefits received from the employer.

When employees are more engaged with their benefits it not only contributes to better financial wellbeing, but to better employee-employer relations as well.

Re-think your HR systems

Of course, helping your employees feel in control of their pay and benefits means having modern and user-friendly HR systems. When these systems are outdated, clunky and not mobile-friendly, important life-admin tasks such as updating bank details, checking your payslip and making pension contributions become harder and more frustrating.

The reality is that today’s employees expect near consumer-grade levels of technology in the workplace, so organisations that still rely on archaic systems need to re-think their approach. Convenience is key – if employees can get easy access to important pay and rewards information, they’re more likely to take positive steps towards improving their financial wellbeing.

Offer mental health support

The last tip is the simplest, but arguably the most important. Stress and worry can be made considerably worse in the absence of having someone to talk to. As an employer, you can help fill this gap by offering counselling. While it won’t be a direct fix for most financial problems, it will offer reassurance and let your staff know that it’s OK not to be OK.

Now we are into 2020, it would be amiss not to find a place for financial education and counselling in your HR strategy.

We’ve known for a while now that money worries aren’t good for the health of your staff or your business – so why not do something about it?


Gethin NadinGethin NadinApril 18, 2017
coffee-1283672_1920-1024x575.jpg

7min1890

For almost 15 years, I’ve been helping employers do the best they can to make the workplace a better place to be. Helping organisations to deliver the best possible experience for their employees is something I’m passionate about, so I was delighted to get the opportunity to judge at this year’s UK Employee Experience Awards.

Ahead of the award ceremony, I was asked to judge two categories; Financial Services, and Internal Employee Recognition. The latter is something I’ve been really interested in, and is a fast-growing area. According to a 2014 HBR report, the most impactful driver of employee engagement is employee recognition.

Organisations that invest in employee recognition and ‘Years of Service’ programmes experience better results, a 2015 study by Globoforce found. Recognition schemes lead to higher retention rates, improved productivity and of course, employee engagement. Seeing so many organisations committing to showing their employees how valued they are, and encouraging this recognition to be driven by their peers was really great.

The first thing that stood out when I looked at the finalists was the widespread nature of the entries. Typically, people expect those employers who really value their employees to be like Google and Facebook, but this wasn’t the case.

From universities, to small health companies, to large financial institutions, there was a diverse range of organisations, all as passionate as I am about doing the right thing for their employees. This reflects a growing trend for employees that are no longer motivated by money, but by feeling appreciated and valued.

The second thing that stood out in the entries was the financial commitment that some organisations made to recognising their employees’ achievements.

Quite a few entries had, rather than buy an off-the-shelf products, commissioned their own bespoke platforms. The time and money committed to creating such large, tailored projects is to be commended. These organisations saw this project as an investment rather than a cost.

For those that didn’t have large budgets, it was encouraging to see so many companies working within the confines of limited resources to do whatever they could to improve the employee experience. Some came up with really simple, but engaging ideas; like a button to send an email to the CEO; hand written notes from the business owner; or, lunch with a leader. These were all things that cost little or nothing to implement, but had a big impact on those who benefitted from them.

Trust in the CEO is critical to good employee engagement. One of the reasons employees rate CEOs highly on Glassdoor is their personality and visibility within the organisation. Quoted by Glassdoor, Paul Winum, senior partner and global practice leader at RHR International, says, “The really great CEOs that develop stickiness for the workforce have some degree of personal visibility and accessibility.”

Of all the entries I judged, one thing was clear – these organisations weren’t improving the employee experience because it improved customer service or increased profits (these were by-products). They were improving it because it was the right thing to do.

These people felt passionate about what they were doing and passionate about making their employees feel valued. During the live presentations, the passion and enjoyment the teams had for their jobs and the schemes they’ve implemented was infectious. Many made the long trip to London from the North of England just to be able to tell the world what they had achieved.

The Future

Despite the widespread adoption of improving the employee experience, what was surprising was how many organisations still rely on old technology – or no technology at all – to deliver their employee experience or recognition schemes. In a world where the average person spends around 90 minutes a day on their mobile phone, organisations should start to consider how mobile technology could help them improve the employee experience. Enabling employees to nominate colleagues anytime of the day, whether they work at a desk or not, is the key to ensuring everyone can give and receive recognition easily.

The employee experience is one of the fastest growing global HR trends. Just like customer experience replaced customer service, employers are focussing on whatever they can to make sure they are an employer of choice.

As the war for talent continues and employees’ motivations change, employers need to be conscious that, if they are to attract and retain the best talent, they need to start making the whole experience of being an employee worthwhile and enjoyable.

“You customer experience will only be great if your employee experience is greater” – Carol Wain

Interesting Links:




Inform. Inspire. Include.
A free way to improve your business.

Customer Experience Magazine is the online magazine packed full of industry news, blogs, features, reports, case studies, video bites and international stories all focusing on customer experience.


CONTACT US

CALL US ANYTIME



Contact Information

For article submissions:
Editor
Paul Ainsworth
paul@cxm.co.uk

For general inquiries, advertising and partnership information:
alexandar@awardsinternational.com
Tel: 0207 1932 428

For Masterclass enquiries:
vuk@awardsinternational.com
Tel: +44 20 86385584

Awards International ltd
Acacia Farm, Lower Road,
Royston, Herts, SG8 0EE
Company number: 6707388

JOBS IN CUSTOMER SUPPORT

Find a job in customer support with Jobsora


Newsletter