In today's dynamic job market, attracting and retaining top talent requires more than just competitive salaries and traditional benefits. Employees are increasingly seeking organisations that prioritise their overall wellbeing, including financial security. That's where Employee Value Propositions (EVPs) come into play. While many companies have started incorporating financial perks into their EVPs, it's crucial to move beyond superficial gestures and create a comprehensive, holistic view of financial wellbeing for employees. In this article, we'll explore why a holistic approach is necessary to attracting and retaining your most valuable employees.
The Changing Landscape of Employee Expectations
In recent years, employees have begun to recognise the importance of financial wellbeing as a fundamental aspect of their overall quality of life. No longer satisfied with merely earning a paycheck, they seek employers who actively support their financial goals. This shift in employee expectations has given rise to the need for a more comprehensive approach to financial wellbeing within the EVP.
Inadequate Approaches Financial Wellbeing Offerings
To understand the importance of a holistic financial wellbeing approach, let's first identify what inadequate offerings look like. Here are some common pitfalls:
1. Gatekeeping Access to Benefits
Sometimes employers can unintentionally erect barriers that hinder employees' access to financial wellbeing benefits, which can inadvertently undermine the empowerment of their workforce. This situation is particularly concerning for new or isolated employees within the organisation who may often feel reluctant to ask for assistance. When these resources are not readily accessible, it can create a perception that such programs are merely symbolic gestures rather than practical solutions.
2. Overemphasis on Superannuation and Retirement Planning
Prioritising long-term benefits such as superannuation and retirement planning, while overlooking employees' immediate financial challenges, may overlook the pressing needs of individuals with more immediate financial concerns.
Often, this imbalance occurs because discussing immediate financial difficulties can be uncomfortable or challenging. Avoiding these topics however leads to the unintentional creation of stigmas around financial stress.
Such an approach, perceived as "one-size-fits-all," misses the mark in acknowledging the diverse circumstances and backgrounds of employees, and does not effectively address the genuine financial issues that individuals across all industries may inevitably encounter at various stages of their lives.
3. Rigid Benefit Plans
Implementing inflexible benefit plans can hinder employees from tailoring their financial strategies to their unique circumstances. These rigid plans may not accommodate the diverse financial needs of employees, potentially leading to frustration, disengagement, and missed opportunities for customised financial support.
A Holistic Approach to Financial Wellbeing
A holistic approach to financial wellbeing goes beyond offering a few financial perks and instead focuses on providing employees with tools and resources to navigate their unique and diverse financial journeys successfully. This approach recognises that financial wellbeing is a multifaceted concept that encompasses aspects like budgeting, debt management, savings, investments, and more. Moreover, it acknowledges the diverse backgrounds and situations of employees, understanding that a one-size-fits-all template is inadequate for addressing their individual financial needs effectively.
GlowPay: A Tool for Financial Wellbeing
GlowPay is designed as a financial wellbeing resource that offers employees the opportunity to manage their financial commitments more effectively. Rather than acting as a mere service, GlowPay aims to be an educational platform that equips employees with the knowledge and tools they need to make informed financial decisions. How GlowPay Fits into a Holistic EVP:
Flexibility: GlowPay provides the option for employees to structure their financial commitments according to their individual circumstances. Whether it's covering educational expenses, home furnishings, or unexpected medical costs, employees have the freedom to set up payment schedules that suit their needs and timelines.
Financial Literacy: GlowPay goes beyond transactional interactions by offering educational resources on budgeting, debt management, and investment strategies. This helps employees enhance their financial literacy, empowering them to make better financial choices.
Alleviating Financial Stress: The ability to break down large, one-off expenses into manageable monthly instalments can significantly reduce financial stress. This, in turn, has a positive impact on job satisfaction and productivity levels.
Employee Autonomy: By giving employees the control to manage their own financial commitments, GlowPay fosters a sense of empowerment and trust. This autonomy allows employees to feel more secure in their financial wellbeing, which can contribute to a more engaged and satisfied workforce.