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Overcoming challenges in financial wellbeing programs

• By Mrin Agarwal
Overcoming challenges in financial wellbeing programs

Having a holistic well-being offering and improving the overall well-being of employees is the driving force for employers to offer financial well-being programs. Employers recognise that associates may be unprepared for emergencies and unable to meet financial goals. Living paycheck to paycheck, struggling to pay bills, and a tendency to overspend are common issues. Moreover, with loan obligations steadily increasing, employers want financial well-being programs to help employees plan their finances better, focusing on enhancing retirement preparedness.

However, employers face two main challenges in implementing financial well-being programs: budgetary constraints and structuring the program effectively. 

Engagement teams face significant difficulties when designing a financial well-being program. Money management is a broad topic, and the diverse needs of employees make it hard to prioritise topics while continuously planning new initiatives.

Additionally, organisations are wary of potential liabilities associated with providing financial advice. Until recently, many avoided offering personal finance programs to prevent overstepping boundaries. However, this perspective has shifted as companies realise employees seek support for retirement and long-term financial planning.

There are very few impartial financial education providers in India. As a result, insurance brokers often become the default choice for financial well-being programs due to their familiarity with financial services. Measuring the success of financial well-being programs is another challenge. Any significant impact takes time to manifest. Can attendance alone serve as a valid measure of success?

Limited budget/non-allocation of funds is constraining an organisation’s efforts to provide financial wellbeing and this is further widening the gap between what employees need versus what they are being provided with. 

However, these challenges need to be addressed to create a more inclusive financial wellness program that empowers employees to lead better financial lives, fosters a positive work environment and ultimately drives business performance.

Practical solutions to overcome challenges

Here are some suggestions for organisations to address these obstacles:

  • Conduct regular short surveys: Regular surveys can help employers understand employees’ financial challenges and preferences. Insights from surveys—such as whether employees struggle with saving, loan repayments, or investing—can guide program topics. For instance, one organisation discovered that its younger workforce was more interested in learning about equities and smart borrowing rather than financial counselling. Following feedback, the company introduced targeted webinars.
  • Choose experienced financial well-being providers: The chosen financial well-being provider should be unbiased, knowledgeable, and capable of delivering a variety of programs. Basic sessions from insurance brokers or salary bankers often lack appeal for a diverse workforce and may lead to misinformation, posing risks for employers. Selecting providers based on experience and credibility ensures better outcomes.
  • Leverage technology and creative initiatives: AI-enabled platforms offering financial planning tools, calculators, recorded webinars, and learning resources can enhance access to financial education. While live sessions remain effective, digital platforms can supplement initiatives and provide cost-effective solutions. Employers can also consider low-cost activities like savings challenges and helpdesks to promote financial literacy.
  • Measure program effectiveness with diverse metrics: Program success can be gauged through participation rates, platform usage, and employee enrolment in benefit schemes like the National Pension Scheme. Employee feedback offers additional insights into the value and effectiveness of initiatives.

    • Normalising discussions about finances is essential for building employees’ financial resilience. This cultural shift must start at the CEO level to ensure financial well-being is prioritised as an integral part of organisational culture.