As the world faces a financial crisis with skyrocketing inflation and the rising cost of living, companies are now honing in on benefits that are focused on their employees and that should include their financial wellbeing, according to Bertie Nel, Head of financial planning and advice, at Momentum.
Nel said: “South Africa is facing a cost-of-living crisis, people are struggling to keep their heads above water. This is an opportune time for companies to consider offering benefits that promote financial well-being alongside the traditional retirement and insurance benefits most South African companies already offer.”
“In today’s economy, an employer that takes financial wellbeing as seriously as mental and physical health will be seen as a trailblazer; retaining and attracting talent in the process.”
Here are four ways employers can promote financial wellbeing in the workplace:
Financial education tools
Many employers already offer their employees access to courses and training programmes so they should include courses that are focused on financial education and well-being too.
“Employers can show they are invested in their employees' financial well-being by ensuring all employees have access to quality financial education,” Nel said.
Devan Moonsamy the CEO of ICHAF Training Institute said that companies should partner with a business that offers financial education or get someone in-house to offer employees knowledge on better money management.
“Things like interest rates and retirement packages, etc, can be discussed with detail to help employees better understand the benefits. It can also help staff members speak to someone at work who can guide them to better financial management,” Moonsamy said.
Debt
Companies can offer employees access to a debt counsellor who can visit the office from time to time to answer burning questions employees might have.
Benay Sager, chairperson of the National Debt Counsellors’ Association said that a good debt counsellor should be able to properly explain the debt counselling process and answer any questions or concerns about debt.
Nel said: “Employees can also access their credit reports. According to the National Credit Act, consumers are entitled to a free credit report once a year from the relevant credit bureaus.”
Stay away from new debt
Nel said, “With the cost-of-living crises and the rise in inflation, it is important to scale back on debt.”
“Encourage employees to avoid making new debt and encourage them to cut out unnecessary expenses where possible.”
Financial adviser
According to Nel, allowing employees access to financial advisers is one of the best ways that they can receive financial advice.
Nel said: “A financial adviser will establish each employee’s financial and investment goals, practical ways to avoid debt traps and set up a sound budget.”
“Access to an accredited financial adviser will better equip employees to make healthier financial decisions and in so doing, create a more beneficial work culture and environment.”
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