Support all age groups with multi-generational financial wellbeing at work

Employee financial wellbeing is a moving target, particularly as means, needs and challenges change according to life stage. Developing a multi-generational financial wellbeing programme will be essential to catering to the needs of your entire workforce. 

In this blog

Nuanced financial wellbeing at work

Understand and support age-specific financial needs 

Steps for successful rollout  

Conclusion and key takeaways

Nuanced financial wellbeing at work

No matter how experienced your employees may be, anyone can experience financial stress. A solid employee financial wellbeing strategy is critical to helping manage workplace stress and improve productivity and engagement.

Going beyond a one-size-fits-all approach means taking into account the differing needs of a multi-generational workforce. A programme that acknowledges and embraces these differences can maximise the benefits of improved engagement, productivity, and performance.

Understand and support age-specific financial needs

A multi-generational workforce faces a series of diverse financial challenges dependent on life stage, with younger Millennials (Gen Y) and Gen Z often facing particular hurdles and stresses.

Here’s a quick breakdown of what your employees are typically dealing with at different age groups, and the relevant kinds of support for each.

Baby Boomers (born 1946 – 1964)

Rapidly approaching the end of their careers, Baby Boomers are typically planning for retirement. Most will be trying to understand how to make that transition – and to ensure they have sufficient pension savings to allow them to live comfortably.

Specific strategies for this group:

• Post-work planning – Resources that help employees understand retirement and how to plan for it, including social security benefits or similar.
• Payroll pension tools – Boomer employees will appreciate being able to contribute to their pension pot direct from their payroll. Or to view their pension details through your interactive payroll platform directly.
• Payroll savings tools – The ‘Bank of Mum and Dad’ is very real and many Boomers will want to ensure they have a rainy-day fund available to help their children and grandchildren. Payroll savings provides a way to simplify the process of putting something aside ‘just in case’.
• Knowledge transfer schemes – Organisations face a significant problem if they allow key knowledge to retire with their Boomer employees. Consider implementing a bonus scheme that encourages collaboration between Boomers and other workers, allowing that knowledge and experience to be passed-on.

Generation X (born 1965 – 1980)

At the peak of their earnings potential, Gen X employees are balancing family responsibilities and household debt management. Many older Gen Xers are also turning their attention to retirement, trying to plan financial provisions for when they leave the workforce.

Specific strategies for this group:

• Pension planning and saving – Most Gen Xers will still be at work for some time to come, but they need to take their pension planning seriously. Offering direct access to pension resources from payroll will encourage greater uptake and better planning.
• Debt management support – Counselling, training and mentoring services to help employees manage their debts will help to improve financial wellbeing.
• Family-centric benefits – Raising children and grandchildren, Gen Xers will appreciate family-centric perks and benefits.

Millennials (1981 – 1996)

Most Millennials are still building their careers, balancing the need for job stability with paying off their student loans. Many will also be parenting new families and hoping to purchase property, managing new responsibilities and expenses. Some may also be operating side hustles to turn extra-curricular interests into cash.

Specific strategies for this group:

• Student loan support – Millennials will have been paying down student loans for some time, but any additional advice and support is likely to be popular.
• Savings and retirement tools – Encouraging Millennial employees to save towards their future will help to resolve some of the financial worries they may face in the future. You should offer both payroll savings and pensions as standard.
• Guidance and counselling – Coaching and peer network groups provide low-cost advice and support while helping to boost financial literacy.
• ‘Big ticket’ assistance – As millennials attempt to climb the property ladder, they will need income verification from your payroll team. With the right technology platform, this data sharing can be simplified, accelerated, and automated, making for a more pleasant experience for everyone.
• Self-service payroll tools – Millennials are tech-savvy, so providing them with self-service payroll tools make sense. They can answer their own queries, better manage their budgets, and help to relieve the burden on your payroll team.

Gen Z (1997 – 2012)

Entering the workforce for the first time, Gen Z is likely to be carrying significant university debt. At the same time, most will be looking to establish their financial independence, moving out of home and trying to get onto the property ladder.

Specific strategies for this group:

• Budgeting tools – Offering tools to manage income, savings and budgeting as part of the standard payroll package places Gen Zers in full control of their finances.
• Earned pay access – Sometimes an unexpected situation can create financial anxiety. With earned wage access, employees can draw down an advance on their next payslip to better weather the event.
• Student loan support – Investigate ways you can help support your youngest employees as they work to repay student borrowing.
• Holistic wellbeing provisions – Consider how to make finances one aspect of a wider wellbeing benefits package that encourages healthier living.
• Personalised coaching – Set your Gen Z employees on the right path with personalised coaching and training, helping them to develop the skills they need for a lifetime of financial wellbeing.

Steps for successful rollout

Follow these fundamental steps to roll out a successful multi-generational financial wellbeing programme:

• Understand how your programme contributes to organisational success
• Assess what your employees want at each life stage, identifying potential solutions to match.
• Build a compelling business case for why your business needs a financial wellbeing programme
• Present your strategy as the solution to workplace wellbeing and productivity
• Work with other stakeholders to implement processes, technology and communications to support the programme
• Analyse performance and uptake, refining the programme to meet the changing needs of your workforce.

This final step is crucial. To ensure the financial wellbeing programme is delivering, you need ongoing measurement of employee uptake and satisfaction.

Using these insights, you can refine the strategy and benefits packages to ensure they continue to meet the changing needs of your colleagues.

You can learn more about making your programme a success in our recent article, How to win executive support for your financial wellbeing strategy.

Conclusion: Tailoring for age supports your people better

Regardless of age or experience, any one of your colleagues could experience financial wellbeing-related problems. From lost sleep to reduced productivity, everyone is potentially vulnerable. Adopting a multi-generational financial wellbeing programme allows you to address these anxieties smartly, empowering employees to take control of their finances. By tailoring your strategy to life stages, employees will be more effectively properly equipped to face challenges relevant to their situation.

Key takeaways

• A one-size-fits-all financial wellbeing strategy — while a great starting point — may not be able to meet all the requirements of a broad workforce
• Acknowledging the specific needs of your employees at different stages of like will lead to a more successful programme.
• Giving colleagues self-service payroll tools like digital interactive payslips gives them more visibility of their finances and empowers them to plan better.
• Coaching and training will be essential to help your colleagues navigate their current life stage.

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