Support financially healthy employees by bridging priorities disconnect

Like employees everywhere, those in Hong Kong have diverse priorities when it comes to their finances.

Some prefer to catch up their savings for retirement, while others prioritise the protection of value for existing savings and the autonomy to make investment decisions. “Employers who are better aligned to employee expectations can maximise the efficiency of their benefit cost in winning employee appreciation,” said Eric Lam, Head of Health & Benefits, Hong Kong and Macau, WTW.

Lam was speaking with HRM Asia after the launch of WTW’s 2024 Global Benefits Attitudes Survey, which found that more than half of employees in Hong Kong (52%) are at risk or struggling with respect to their finances.

More worryingly, more than a third of employees (35%) say they are living paycheck to paycheck as their financial situation continues to deteriorate. 

What can employers do to support employees to improve their financial wellbeing, and what is currently missing from the mix?

Lam said, “Knowing diverse employee expectations can help employees review whether these desirable features are already in their existing benefit offerings and consider enhancing these features if possible.”

“Some features do not result in a change in employers’ contribution cost. For example, providing flexibility for employees to save more on a voluntary basis, or expanding the investment fund options through different service providers.”

Faced with challenges such as the cost of living in an expensive city such as Hong Kong, 29% of employees expect their financial problems to get worse in 2025, with 28% saying their financial situation is causing them higher levels of stress and anxiety.

To improve the long-term financial wellbeing of employees, organisations can provide more financial planning education in the form of talks and webinars via third-party providers, said Lam, who added, “Offering choices in medical benefits and making voluntary solutions available can also help improve the financial wellbeing of employees as there is protection to larger medical bills when needed.”

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In an increasingly competitive landscape, WTW believes retirement benefits are critical for attracting and retaining talent. However, a clear disconnect in priorities between employers and employees exists.

Employers, according to WTW, should take the opportunity to align their focus with employee value, cost pressures, and talent objectives to address how their benefit programmes align to retirement and financial wellbeing initiatives.

Lam added, “From our survey, we can see that many employees in Hong Kong are feeling stressful on their personal financial situation. These can lead to disengagement and presentism at work.”

“To close the gap in terms of the disconnect in priorities between employers and employees, companies have an opportunity to relook at their focus with employee value, cost pressures and talent objectives to address how their benefit programmes align to retirement and financial wellbeing initiatives.”