90% of millennials willing to share data in exchange for financial wellbeing support
90% of millennials are willing to share personal information with a payroll provider in order to receive support with their financial wellbeing, as are half (50%) of UK employees. This is according to the Future of Pay research study by ADP. The report surveyed 4,000 employees and 2,900 businesses to explore workers’ perceptions and attitudes towards traditional and emerging pay methods to address some of the biggest human capital management concerns.
The study also reveals that the quantifiable economic benefits of financial wellness to businesses are recognised by 67% of employers, suggesting that the implementation of support may have a significant role to play in addressing the UK’s productivity crisis. By introducing alternative pay methods and financial wellbeing programs, workers are empowered with greater control over their finances in order to avoid economic hardship, and to assist them in their financial planning.
In fact, almost 80% of workers expect their employers to help them with their financial wellbeing, and as such, whether this support is offered can have a bearing on attracting and retaining talent. To emphasise this, the study revealed that 62% of employees say that off-cycle pay options would make a difference when considering a job offer. This illustrates that financial wellness support can improve not only current employees’ productivity, but also how attractive a business is to potential new talent as there is a clear demand, if not expectation of financial assistance from employers.
ADP UK’s managing director, Jeff Phipps, said, “In a time of increasing focus on personal data protection, it is eye opening that almost all millennials would be willing to exchange their personal information in order to receive support in their financial wellbeing. While employers do need to address this demand in order to remain competitive, it is equally important that they take a considered approach to ensure that employees’ personal data is not being misused. Employers must start a conversation with their staff about financial wellbeing in order to provide support without overstepping the mark into employee personal affairs.
“Businesses are aware that financial wellbeing has an impact on productivity, and in light of continued productivity stagnation and slow wage growth in the UK, employers cannot afford to turn a blind eye to the issue. However, it is vital that the approach to financial wellbeing takes both employers and employees into consideration. Offering flexible pay may not be feasible for all organisations, such as smaller businesses with limited cash flow. What any business can do however, is begin an open dialogue with their workforce to figure out exactly what type of support would be most beneficial, and most likely to actually have an impact on engagement and productivity levels. Whether this takes the form of workshops, access to expert advice, or one on one personalised sessions, there is no one size fits all solution. In order to make sure financial wellbeing programs are effective, and that personal data is being used appropraitely (sic), businesses need to collaborate and communicate clearly with their employees.”
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