January 26, 2021

The financial welfare programs of companies

The financial welfare programs of companies


It will help our employees to manage stress, especially in relation to their financial situation, it should be an imperative for companies. Meanwhile, financial stress has become a major problem for Spaniards, since companies are starting to work on the implementation of programs to help their employees with their finances, as is already done with the initiatives of corporate welfare.

If you allow me, I will quote here a statement from one of the best athletes of all time, Earvin «Magic» Johnson, who once said: «Do not ask what your teammates can do for you. Ask what you can do for your companions ». This phrase has made me think about how important it is for companies to listen to the voice of the employee, because only then will we be able to understand their concerns and design programs that respond to their needs. More and more employees are looking for other benefits beyond economic retribution, what we call "emotional salary". Being able to respond to their expectations and offer them benefits that improve their quality of life, is what as a company puts us in a differential position.

The first step we must take into account to create a successful financial wellness program is to understand what our employees really need. For this, we have to address these four fundamental principles:

The first one is related to the way in which the company has to address communication with its employees. Knowing them is the only way to design relevant programs for each of them. Demography matters when it comes to discovering the needs of each group and the best methods of communication. For example, for younger people, information on how to reduce the debt they have acquired in their student stage may be more important, and yet new parents will surely pay more attention to the possible benefits of life insurance. Thus, online learning tools may be more suitable for younger employees, while others may prefer individual counseling or even classes, especially for more complicated topics.

The second principle is one that relates to your financial health, trying to provide useful tools that help employees manage their finances. Like physical well-being, working to improve financial health requires both focus and coherence. Providing planning tools, such as a calculator that lets them know how much they will need to save for retirement, can help them better manage their money.

Third, it is important to keep in mind that we need to offer our employees financial security through attractive and accessible products. A successful financial wellness program must be able to help employees achieve their goals by addressing their short and long-term needs. Flexible pay programs, refinancing of student loans, credit services, or life, accident or illness insurance can help you build your future and protect you from future eventualities.

And finally, it highlights the approach to inclusion and financial education, that is, making the program accessible to all employees, regardless of their circumstances and being able to assess their level of knowledge. To understand their financial challenges, we have to understand their financial behavior a little more, such as their philosophy regarding investment, retirement or taxes.

We all like to feel that we have control of our future and finances. Therefore, a successful financial wellness program should make all employees access the benefits offered by the company. If our employees feel valued and supported, we will be building a satisfactory work environment and, therefore, improving morale and productivity.

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