Is eLearning Important For The Financial Wellness Of Employees?

Is eLearning Important For The Financial Wellness Of Employees?
Summary: Financial wellness means having stable finances and employees are concerned about attaining it. The lack of financial wellness can cause absenteeism and resignation.

How Can Financial Wellness Be Taught To Employees?

Financial wellness has become an issue for employees because when they have stress due to a lack of money, it can affect their mental and physical health. This kind of wellness means having no worries caused by a lack of money. Hence, employees have to take control of their expenses to ensure this kind of wellness.

Companies can encourage employees to save money for the latter’s well-being. When employees have control over their expenditures, they are not stressed about finances. Financial wellness is crucial for companies because not having the right kind of cash can impact employees. They can find it tough to concentrate on work and lose their productivity.

Employees can feel more motivated to perform well on the job when they have stable finances, which is possible with better finance management. Employees have complained in the past that lack of proper finances causes sleep deprivation, which is detrimental to productivity. In research conducted in the U.K. into financial well-being involving 750 employers and 11,000 employees, it was found that employees are worried about their finances after retirement. This survey concluded that employers are losing a lot of money (i.e. approximately 15.2 billion euros) because employees are absent from work owing to their financial concerns, and may even change jobs. Every year in the U.K., employees take 2.5 days off work due to their financial problems.

How Employers Can Help Employees Manage Their Expenses

1. Retail Vouchers

Employees can be given discounted vouchers for shopping and groceries. This helps them indulge their tastes without going overboard. Millennials want to party hard in addition to working, too. The employees should know how to use these discount vouchers. Companies can ensure that the money is deducted from their salaries in return for these vouchers, but also that the employees get to shop from the brand of their choice. HR can maintain a list of which shopping brand is an employee’s favorite for retail and groceries.

A concierge service is an important part of the hotel industry because guests can get recommendations about which nightspots to visit, etc. Similarly, you can make sure that your employees get guidance about which discount vouchers to use and when. For example, if you have given ticketing discounts to employees, they should know when to avail their flights because such offers are time-sensitive and expire. Hotel discounts have the same problem.

2. With Fitness Targets

Employers can also help their employees maintain their fitness goals in the new year. They can ensure that their employees have access to discount coupons of fitness portals so that they can get gym memberships at low rates. They can also order sports goods at cheap rates through such portals.

3. Advice About Financial Security

Employees have to be advised about financial security because unexpected events can happen at any time. There can be a medical emergency that can use up all their savings. Hence, it’s important that they have some savings so that they are not without any resources. With proper financial aid such as insurance policies, employees can have peace of mind knowing that they won’t have to ask for help in case of emergencies.

4. Offering Salary Sacrifice Options

Employees can also opt for salary sacrifice, which is a popular scheme in the U.K. Although most cash benefits are no longer exempt from tax, employees can still get benefits such as childcare through a salary sacrifice scheme. A salary sacrifice is when an employee agrees to swap some of his cash pay for a non-cash benefit and be exempt from tax payments for it. An employer has to offer the employee such an arrangement by including it in the employment contract. Hence, employees can give up some of their cash salaries to make payments for workplace nurseries and childcare. As per the salary sacrifice scheme, the employees can get 2 euros from the government for every 8 euros they put into the childcare account, which has to be opened on the website. So the employee not only gets the 8 euros exempted from tax but also an extra 2 euros. To be exempted from tax, the childcare provider has to be signed up with the tax-free childcare scheme. Employees can get an amount of up to 2000 euros per year this way.

Employees can get help from such schemes because they can avail childcare expenses through the vouchers by arranging home care workers for them. They can also swap some of their cash salaries for using a cycle to commute to work. Therefore, this is an excellent way for employees to cut down on their taxes. But when situations change and employees don’t want any non-cash benefits such as childcare vouchers because they are working from home due to the pandemic, they can ask their employer to cut back the salary sacrifice and receive the salary in cash.

Employees also feel happy when they realize that the employer is concerned about their financial well-being.

Can eLearning Help?

Employers have to help employees manage their financial issues through eLearning. This is because these problems differ with employees in different age groups. Younger employees have a tough time managing their current expenses and fixed asset needs like getting a house, while older employees are worried about managing their expenses after retirement. Companies should provide older employees with sufficient resources to do their retirement planning, which can include audio files on how to manage money.

Employees can be taught to think about when they would like to retire based on if they have enough funds to go through old age. The employees can decide how much they would like to work after a certain age, depending on their past and current savings and future expenses. Companies can advise employees on which scheme they should invest in according to the rate of interest offered. Also, they should invest depending on how many years they have left to work because the fewer the number of years, the more lucrative should be an investment. With financial eLearning for retirement, employees can retire at an appropriate age, leaving their job open for new employees and helping new talents to blossom.

eBook Release: Creativ Technologies
Creativ Technologies
We provide niche elearning solutions to corporate clients. Our company also provides LMS administration services. We are experts in Blended Learning, Mobile Learning and Web Based Training

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