Providing financial advice packages to staff is the latest card being played in the war for employee retention.
Mercer financial advice business leader, Jo-Anne Bloch, said a strong trend is emerging and that financial advice is seen as a good employee benefit – it’s now seen as important to have employees able to retire comfortably.
“More than 50% of our corporate client base access financial advice for their employees as an added benefit,” Bloch added.
Bloch said that Mercer see many companies that have embedded the provision of financial advice into their employee benefits because “they’re concerned to ensure their employees have access to the right help and assistance”.
Geoff Pritchard, CEO of management consulting firm Finovia, said the latest innovation in recruitment and retention strategy is to ensure that senior people have regular access to a ‘financial health check’, and that all-employees can access basic financial education programs.
“In Australia, we are having discussions with CEOs across the country who understand the relationship between an employee’s sense of financial security and their performance at work,” Pritchard said.
With a recent Mercer survey finding that just 25% of Australians feel confident their super will last the duration of retirement, Bloch said that there is also an emerging interest in providing superannuation consultations.
Indeed the same survey found that most full-time working Australians continue to have significant gaps in understanding important aspects of their superannuation.
Heather Dawson, leader of the Mercer Super Trust, said: “The survey results paint a pretty dire picture for a lot of Australians in retirement. Making sure Australians have the right level of retirement savings is not just about increasing contributions, it’s also about ensuring the right investment strategy within super at each stage of life.”
Aon Hewitt reported in a US study that just 30% of employers were confident their workers were sufficiently prepared for retirement.