rebaLINK: introducing a financial advice benefit

The pandemic has exacerbated these issues for many employees. Nudge’s Elephant in the Room (2021) research found that 60% of employees are now more aware of their finances as a direct consequence of Covid-19. What is important to them with regards to money has also become clearer – 87% state ‘control’ is the key, 85% say ‘skills and knowledge’, versus only 64% wanting ‘more money’.

A recent post on rebaLINK – REBA’s online member-only networking and due diligence platform – raised a timely query about introducing a financial advice benefit.

The employer wanted to introduce a benefit which would include free general employee 'surgeries' and independent follow-up sessions for individuals, if requested. They wanted to know what other employers have in place and how successful the initiative has been.

Professional Members who responded to the post had put in place a range of solutions  from pension providers, banks and specialist financial planning businesses.

One explained that they use their pension provider for generic financial information and support, which is mainly pensions focused. They said that it has been very well received, and was a valued benefit to employees, with the majority having their queries answered at this point. However, if employees wanted to, at their own cost, they could use the same provider for formal advice. They also added that senior employees with more complex requirements would typically already have their own financial advisers.

Another respondent said that take up of their financial planning benefit had also been good with positive feedback. They offer an initial free financial planning session and then charge a per annum fee, should an employee wish to continue with the service. The benefit can also be offered through a salary sacrifice arrangement.

Other types of services included paying for a financial adviser to visit each office several times a year, and also a phone service that offers free advice to employees. Employees could then choose to sign up with the financial adviser and pay an annual charge.

Some banks offer generic financial education webinars on topics such as budgeting, mortgages and investing and some employers have taken advantage of this for their employees. If employees wish, they can have a one to one call with a personal financial adviser. However, the respondent who used this arrangement noted that the personal advice was limited because the adviser could only offer products related to their bank.  

Finally, another employer had utilised the services offered by their pension provider, and partnered with a local financial planning company to offer more general information (savings, mortgages, investing). The latter had mixed results and so they’re now looking at their pension providers’ platform which offers information on physical, mental and financial health.

It's clear that there is an array of options available to employers when it comes to offering financial advice in the workplace. However, perhaps the first step is to find out what your current benefits providers offer and whether this can meet the needs of your workforce.

Join the conversation on rebaLINK.

The author is Dawn Lewis, content editor at REBA.