How to . . . Boost employees’ financial wellness

MOST South Africans are feeling under pressure as the rand hits fresh lows and the inflation rate creeps towards the upper level of the Reserve Bank’s 3% to 6% band. Companies can help by improving employees’ financial wellness.

Viresh Maharaj, chief marketing actuary of Sanlam Employee Benefits, says the success of companies is dependent on the ability of staff to deliver on their responsibilities. Stress and ill health dampen their capability to do so.

One of the biggest stressors is financial worry, which occurs when employees battle to make it to the next payday. “It has been found that financial stressors play a far greater role in influencing employee psychological health and stress levels than health stressors,” he says.

A financial wellness programme should include:

Appropriate funding mechanisms that enable lifetime wealth creation;

Structuring these mechanisms to encourage better and more informed financial decisions; and

Providing financial literacy and education.

Maharaj says that if the programmes are to be successful, they need:

Multilevel leadership. To create a culture of financial wellness, all managers must be involved and engaged;

To be a natural extension of your organisation’s identity and aspirations. This will mean that it feels familiar to employees;

Relevance. They must also be wellexecuted. Do not palm these programmes off on a small, already overworked, team;

Accessibility. If it is too expensive, it defeats the object; and

Consistency in your communication with employees. “The delivery of the wellness message is a crucial element to encourage engagement.” — Margaret Harris