How to promote financial health? Discover the keys to contributing to the financial well-being of your employees
Financial health has become a key concept, more and more visible in Spanish companies. The COVID-19 pandemic has transformed our living and working habits, directly affecting our well-being in all areas. In fact, more than half of employees say they are more concerned about their financial health than other aspects of well-being, such as physical, mental or social health.
Faced with the discomfort and concerns expressed by employees during this last period, companies increasingly need to understand how and with what tools they can contribute to improving the well-being of their employees.
What do we mean when we say “financial well-being”?
During the webinar “ Financial health, the big concern of 2021: how to take care of the economic well-being of our workers ”, organized by Devengo and RRHHDigital last Thursday, we were accompanied by experts in HR, people management and financial health from companies such as Devengo, TacoBell, Seacoach and Cigna, providing the keys to financial health and how to care for employees economically. Also, new ways to access money that worked them.
According to Fernando Cabello-Astolfi, CEO and co-founder of Accrual, “Financial health is the ability to cope with expenses, planned or unforeseen, both short and long term.” For her part, from Seacoach, Carmen Máñez Carvajal, human resources consultant, underlines that financial wealth is based on “the control of all the income received and the possibility of being free to decide in what to invest this income”.
In this sense, everyone agrees that companies have a lot to contribute, through the use of tools and strategies that facilitate this process: training, salary projects …
“Being in good financial health takes away from being a daily concern. It allows the person to think about other concepts that add more value to his life. Financial well-being is closely related to aspects of the home economics and business planning, ”says Santiago Manzanero, director of human resources at Casual Brands, the company that owns TacoBell Spain.
Financial health, inevitably linked to physical and mental health
The current situation affected by the pandemic is wreaking havoc on the mental health of many Spaniards. Carmen Máñez Carvajal, human resources consultant and founder of Seacoach, assures us that “stress is directly linked to a person’s productivity. If a person is not in good financial health, it can affect their mental health, social relationships, daily life and even their productivity. “
For Santiago Manzanero, “the ERTE situation in recent months has created a very significant financial stress for many people. There is no company that was 100% prepared for this.”
Financial tools to promote financial health
Companies can provide access to a variety of tools to help employees achieve financial well-being. One of the basic tools are those that allow access to accumulated liquidity, as this would improve short-term financial health. De Accrual, Fernando Cabello-Astolfi, points out that “poor financial health can be one of the biggest concerns for an employee.” Thinking long term with long term tools seems like a good place to start. Having good health insurance, good coverage … will give the company the possibility of financially “curing” its employees. In the short term, businesses have to deal with both income and expense. “
Wages earned are also becoming a global macroeconomic trend. “Pay-on-demand is not a cycle in itself, but it is a station. The next station (step) would be the real-time salary because the automated management can generate micro-savings, marking the difference between dignity and unworthiness, ”he says. -Astolfi. Implementing strategies that produce small cumulative profits can be very relevant, and pay on demand is a big step forward.
The role of companies: communication and action, keys
For Ana Romeo, Director of Human Resources at Cigna, “Companies must take into account the sense of well-being generated by good financial health. From HR there is a lot to say and to work.”
Shared by all, taking care of the holistic health of employees is essential, with the establishment by the company of mental health plans, promoting physical well-being, but also a strategy from a salary point of view. Carmen Máñez Carvajal, human resources consultant and founder of Seacoach, stresses that “this concept should be imposed more and more in human resources departments. Good overall health will bring greater productivity, greater retention of talent, better reputation of the company … Investing in financial health, in a holistic way, is absolutely important for companies “
“Companies may not be able to pay more, but they can pay better,” emphasizes Fernando Cabello-Astolfi, CEO and co-founder of Devengo. “Businesses need to provide tools that help employees meet their financial costs and there are concepts that can be very helpful and help them think better, such as actual disposable income.
Communication has also been a key element in securing aid and improvements in health. Santiago Manzanero, Human Resources Director of Casual Brands Group, TacoBell Spain, points out that companies have had to react. “Communication has played a key role in our business and has allowed us to set up plans in which we anticipate sums of money and use very advanced systems. These are very useful services.
Ana Romeo, the HRD of Cigna, evokes the concept of supporting the company for its employees: “In our concept of supporting employees, the economic health of our employees has always been part of it, with much more flexible products. . time to talk about economic health, the balance of income and expenditure and that future within pensions in Spain depending on your salary level. It is a key point of our economy and our society. “
Employee wellness programs
The poor financial health of the employee can directly or indirectly affect the business itself, as it extends to aspects of the person such as their productivity or stress level. Carmen Máñez Carvajal, HR consultant and founder of Seacoach, insists on the need to fully integrate this type of concepts and initiatives within companies and their actions. According to him, “this is a very revolutionary concept, but it has not yet been implemented in Spain. Now the question is how to start? What strategy do I want to follow in my business? C ‘is something that should be part of our wellness programs. It is very powerful as a measure of talent engagement and recruitment. “