More than half of Indian employees anticipate that they will be
up against a less comfortable retirement than their parents’ generation,
according to the latest survey by global advisory, broking and solutions
company Willis Towers Watson. The 2016 Global Benefits Attitudes Survey found
that while employees’ satisfaction with their financial situation in India has
increased 9% since 2013, 56% of Indian employees still fear that they will be
worse off than their parents in retirement.
When questioned about their current financial state, as many as
46% of employees express concerns and more than 1-in-3 stated that their
financial problems negatively affect their lives.
The study of over 2,000 employees in India found that almost 54%
worry about their future financial state. A growing proportion of employees
expect to work through their sixties to meet their financial obligations. All
these factors pertaining to financial insecurities hinder performance of
employees at the workplace.
The research found that 52% of employees think that they are
less effective at their work due to financial problems. Among employees who
have both short-term and long-term concerns, 75% admit to above average or high
stress. In contrast, the same is true for less than 2-in-5 employees in the
unworried group, employees who are not worried either about the short or
long-term. Employees with both short- and long-term concerns are 1.5 times more
likely to report poor health and twice as likely to leave for another job.
Kulin Patel, Director, Willis Towers Watson India said, “The growing insecurities of employees around
long-term financial stability demands the immediate attention of employers.
Companies are beginning to take steps by making their employees’ financial
well-being a core component of their overall well-being strategy and employee
value proposition. Gradually, employers are understanding the link between
their employees’ well-being and their performance and productivity at work, and
how this affects the organisation’s bottom line. Soon, they will realise that a
holistic approach is needed to address these issues effectively.”
According to the survey, 57% of Indian employees support the idea
that their employer should have a role in encouraging them to save for
retirement. However, 32% would be uncomfortable receiving targeted messages
from their employer on these matters. Such complexity should be addressed with
sensitivity.
Notably, 46% of employers intend to offer a comprehensive suite
of tools, seminars and education that cover budgeting, planned large purchases,
debt reduction, wealth accumulation, protection/insurance and tax
assistance/advisory by 2018, as revealed by the findings of the Willis
Towers Watson’s Staying@Work 2015/16 survey**.
The biggest growth in promoting financial well-being in India
will be in the use of customised and targeted messages, where 50% of employers
intend to do so over the next three years, on top of the 13% currently doing
so. Employers should aim to help employees address their different issues,
from short-to-medium-term savings, through to the traditional long-term
retirement savings.
The survey results also suggest that 1-in-4 employees, when
asked about their top priorities, prefer superior retirement or health benefits
to pay and bonus and more than 2-in-5 would prefer some alternative to pay and
bonus.
Kulin Patel further said, “There is a need to
boost engagement and productivity by reconfiguring the benefit package offered
by employers. Different employee segments may require a different mix of
benefits that depend on their financial priorities at their given stage in
life. For employers to move beyond their conventional role and intervene to support
their employees, a one-size-fits-all approach cannot be adopted consistently
across all organisations as a solution. 
