A fresh approach: Motivate your employees

14 Oct 2010 | 3 min read
Several leading organisations have recognised that their employees need financial guidance – and we’re not talking about the odd seminar on superannuation.
 
Instead, we’re talking about offering impartial financial advice that inspires and motivates people to get ahead financially. And we are receiving increasing interest from organisations who are interested in doing just that for their employees. 
 
A recent US study has some clues as to why this interest is on the rise. Charles Schwab, a US investment company, conducted a study to ascertain the improvements in financial outcomes (if any) experienced by employees who took up the professional advice their employer made accessible versus those who managed their financial decisions on their own. 
 
The study found that there were clear improvements, arising from three key outcomes:
 
  • Increased savings – three out of four employees who took up professional advice increased their savings rates. On average, savings doubled to 10 percent of salary. 
  • Better diversified portfolios – those who sought professional advice had at least eight investment options in their retirement (superannuation) portfolios, compared to their counterparts on average had four. 
  • Staying the course – employees who sought advice tended not to panic during the ups and downs of the stock market and jump to cash. As a result, this cohort’s portfolios rebounded with the market last year. 
What can you do?
 
If you’re an employer, perhaps you would like to explore options to provide advice. 
 
Either way, the critical factor will be to ensure that this advice is impartial and focused on the needs of your people, not a push by a financial institution for specific investment vehicles or a particular superannuation fund.
 
"I don't think people understand the full extent of help they can get," said one employer, "Multiforte talks about where they are from a bigger picture, where they want to get to, and the steps they can take to ensure they get there. We’ve found their services invaluable." 
 
Multiforte offers three key services for employers interested in assisting employees with investment goals and retirement needs:
 
  • Seminars – offering financial advice and insights to raise people’s awareness of financial strategies and the options that may be available to them, and to introduce them to an approach that will help them make more effective decisions about their financial well-being. 
  • Financial health-checks – like a physical health check, though focused on financial health. We assess an individual’s current situation, help them to articulate life goals for which they need planning and resources to achieve, and then identify potential strategies that could help them achieve their goals. 
  • Personal financial advice – where an individual requires an in-depth consultation, strategic advice or full financial advice, and implementation support to provide them with a personal plan to achieve their financial and lifestyle outcomes.
With something as important as your employees financial wellbeing, why not make a difference? If you would like to explore options for your people, please call Tony Clark on 02 8209 1607 or email tclark@multiforte.com.au.
A fresh approach: Motivate your employees
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