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In today's world of fluctuating economies and rising living costs, ensuring the financial well-being of both in-house and remotely employed workers is paramount for global organisations.
In this article, we take a deep dive into what financial well-being means and strategic ways that global organisations can support their employees’ financial well-being.
In a world where employee wages no longer match employee expenditures amidst rising inflation, global organisations exploit strategies to support their remote staff's financial well-being.
Globally, employees across different industries are dealing with some level of financial stress, and all that stress is not only harmful to your employees’ mental and physical health; it can be lethal to your bottom line as a global organisation.
Financial Finesse founder and CEO Liz Davidson says, “Employee financial stress is at the greatest level since the Great Recession“. She says employer-sponsored financial wellness programmes are no longer simply nice to have. They’ve become an “imperative.”
She concluded that properly compensating your staff is the first step in addressing money stress.
But if you want to become a stand-out employer, one of the most effective HR benefits you can provide is a base layer of what I call “financial health.”
Studies show that when individuals are financially healthy—that is when their basic financial needs are met, and they have a clear picture of how their financial choices and decisions impact their lives—they experience greater overall well-being and bring their best selves to the workplace.
Leading global employers prioritize financial wellness, actively seeking avenues to alleviate their employees' financial stressors.
Supporting employees' financial well-being has become an indispensable aspect of fostering a thriving workforce.
One of the five key dimensions of well-being, financial health impacts the employee experience business performance.
Due to current realities, financial health for employees can no longer be relegated to the back burner—as it impacts not only employee experience but also their performance.
Global organisations are investing in financial well-being programmes, hoping to improve employee morale, productivity, and performance while reducing absenteeism, healthcare costs, and mental health strain.
With recession and inflation fears rising, employees are looking more closely than ever at their finances.
Below, we look at ways some of the best global employers are helping their people stay ahead of these difficult times whilst building a strong financial foundation:
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Pay increase
The world's best employers are raising wages to combat hyperinflation and help employees support their families.
To help their employees weather these difficult times easily, some organisations are now introducing bonuses to help cushion the effect of the unpredictable economies that employees find themselves in.
Hardship grants
For some workers, a hospital bill, a family emergency, or other unexpected expenses can immensely strain their finances and mental health.
The reason why some global employers offer hardship grants is designed to help employees navigate extenuating circumstances.
A sneak peek into the 2023 Fortune 100 Best Companies to Work For® shows that Hyatt, a renowned global hospitality brand ranked No. 76 on the 100 Best list, in 2020, established the Hyatt Care Fund.
This initiative aims to aid employees impacted by unforeseen events like natural disasters and humanitarian crises.
The fund channels all donations towards addressing urgent colleague needs, including housing payments, groceries, childcare assistance, utilities, and other essential expenses.
Interest free loans
With so many global employees facing personal debt crises, some employers are trying to help workers avoid costly, high-interest loans.
Worldwide technology, which occupies 19th place on the 100 Best lists, offers workers a programme called “Purchasing Power,” which allows employees to buy household items and more through a payroll deduction over 12 months, avoiding interest and fees.
Financial education programming
A notable challenge to the financial well-being of global employees is the widespread lack of financial literacy. Shockingly, one in three global employees lacks essential financial knowledge.
However, employers can play a pivotal role in addressing this issue. For instance, Protiviti, a leading global consulting firm ranked No. 25 on the 100 Best list, supports its employees by providing financial webinars aimed at empowering them to navigate their finances effectively.
Cash award
For certain global employees, rather than trying to foresee every conceivable challenge they may encounter, the strategy is simple:
providing cash grants and empowering individual employees to allocate funds based on their distinct needs and priorities.
Kimley-Horn, ranked No. 28 on the 100 Best list, implements this approach through "Red Envelope Days." During these occasions, employees receive gift cards or cash.
In recent instances, the professional services firm held four "Red Envelope Days," where every employee was granted a $500 gift card.
This is a kind gesture from global employers seeking ways to help their employees manage the economic uncertainties amidst the rising cost of living for their remote teams.
Employee discounts
For many employers who are in the retail chain business, offering a meaningful employee discount is another way to help workers deal with economic challenges and inflation pressure.
Retail chain Target, ranked No. 26 on the 100 Best lists, extends a 10% discount at all Target stores and on Target.com to its team members, their spouses or domestic partners, and eligible dependents.
Additionally, team members enjoy an extra 20% discount on various fitness and wellness products, including fresh and frozen fruits and vegetables.
Camden Property Trust, ranked No. 33 on the 100 Best list, is a multifamily real estate investment trust that provides team members with a monthly rental discount at Camden communities.
Regular full-time employees receive a 20% discount, while part-time employees enjoy a 10% discount
Mental health resources
Numerous global employers are now prioritizing both financial well-being and mental health concurrently.
By fostering financial wellness, advocates aim to alleviate anxiety and address mental health issues stemming from financial insecurity.
Power Home Remodeling, No. 13 on the 100 Best lists, uses its employee assistance services programme to offer unlimited access to mental health professionals and financial advisors.
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For global organisations looking for ways to support their employees’ financial well-being, it is important to survey your teams to learn about their specific needs and how you can help improve their financial well-being.
At Workforce Africa, we understand that the success of your business in Africa is driven by how well your team is managed.
This is why we leveraged over 19 years of experience and research to develop comprehensive solutions for your organisation.
Feel free to schedule a free consultation. Our experts, based in over 33 African markets, are always ready to simplify any difficulties and help you succeed.
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