Offering support to employees in the administration of wages is an initiative that has been gaining a lot of space in the market. After all, it’s a great way to increase team satisfaction and productivity.
But those are not the only advantages. It is also important to know how financial well-being attracts new hires and improves recruitment.
In this post you will find out what is the relationship between financial welfare programs and the attraction of talent. In addition, we’ll show you practical tips on how to help employees deal with money better.
Did you find it interesting? Stay with us!
What is a financial wellness program?
Financial well-being program is a set of actions focused on improve the relationship of employees with money.
The aim is to avoid or reduce stress caused by poor management of personal finances, which leads to a lack of focus, demotivation and drop in productivity at work.
In general, this type of initiative focuses on teaching professionals the basics about controlling their finances.
Topics such as emergency reserve, debts, impulse purchases and even investment strategies are addressed.
How do financial welfare programs help attract new talent?
In an increasingly competitive market, attracting good talent is one of the biggest challenges facing companies today.
To find the ideal candidate, it is necessary to combine specific qualifications and an appropriate behavioral profile, which makes the search extremely difficult.
At the same time, professionals have high expectations regarding remuneration, challenges and career purpose.
So, to increase the chances of attract the best candidates it is essential to differentiate yourself from the competition.
The best way to do this is to see what others don’t, to offer unique and relevant benefits.
The importance of financial well-being
OK but how financial well-being attracts new hires and improves recruitment?
Money is a concern for most people. According to a survey by the UK residents Association of Financial Educators (Abefin), eight out of ten UK residents workers have problems with money.
This can be a great opportunity for your company. In times of insecurity, financial welfare programs they are very attractive to most professionals in the market.
More than offering a benefit, this initiative meets one of the main needs of the employee.
Check out some of the main advantages of the measure for the company and employees:
- professionals acquire free of charge the knowledge they need to overcome their financial difficulties;
- the company starts to be recognized for being concerned with the concerns of its employees;
- with less financial stress, the team starts to have more quality of life and physical and mental health;
- organization members work happier, more focused and engaged, which increases productivity and business results.
How can HR develop a financial welfare program?
Now that you know the good points, it’s time to find out how the financial well-being attracts new hires and improves recruitment.
To do this effectively, it takes a lot of planning. Below are some essential actions that your company must implement to be successful in this objective.
Customize the financial wellness program
Structure a financial welfare program is not about thinking about the best actions for most people, but about what are the right activities for each one of them.
Employers need to pay attention to individual needs of each employee or candidate, observing their profiles, desires and difficulties.
For example: a collaborator who is a first-time father has different financial needs than another who has just come out of surgery. The two problems can be solved in different ways, and it is up to the company to evaluate the best way to do this.
A good tip is to map the team’s reality through a questionnaire or individual conversations, in order to think of the best solutions. The more personalized the program, the more results it will bring.
Offer budget-saving benefits
Often the benefits offered are more important than the salary for the professional’s financial life.
Try to include in the package advantages that alleviate the personal budget. Food stamps, gasoline allowances and daycare allowances are among the most common.
Some companies go further and offer unusual benefits to meet specific needs. THE Perond Ricard, for example, there is the marriage allowance, which consists of three extra minimum wages for the newly married employee start a new life on the right foot.
That way, the person can use the salary for other purposes, since there is more money left in the account.
Have payment on demand
Payment on demand is one of the main trends to attract new hires and improve the recruitment with financial well-being.
In this modality, the employee can redeem your available payments whenever you want, without having to wait for a fixed date every 30 or 15 days.
This gives the person much more control over their money and can better plan their spending.
Furthermore, having immediate access to payment is one of avoiding financial pitfalls, such as missed deadlines and accrued interest.
Offer financial education
Financial education is of great importance for the success of the program. Promote online courses, lectures and workshops on topics related to personal finances, such as budget spreadsheets, changing habits and tips for always spending less than you earn.
As the employee evolves in his knowledge, guidance on more advanced investments can be addressed.
Another interesting action is to offer monitoring of specialized coaches.
These professionals will be able to get to know the needs of their employees up close and develop the ideal plan for each person’s finances.
We’re done with our tips on how to financial well-being attracts new hires and improves recruitment.
Now that you are familiar with the subject, how about putting what you have learned into practice? Observe the behavior and needs of your team and create a customized program for your company!
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