It’s Tough Out There – Helping Employees Navigate Rising Costs
Against a challenging economic background, many Kiwis find themselves financially strained, contending with a myriad of factors such as high interest rates, housing unaffordability, and escalating insurance premiums.
According to Stats NZ’s latest Household living-costs price indexes (HLPIs), the burden of household expenses has surged to unprecedented levels, with costs rising by a staggering 21%-24% across various household types – a stark departure from the relatively modest increases observed in preceding years.
Contributing to this pressure is an exponential rise in mortgage rates. Over the past three years, mortgage rates have more than doubled, significantly impacting the affordability of housing – not only for those who are looking to buy, but for many existing homeowners who’s previously low fixed term rates are coming up for renewal.
In the face of these daunting challenges, employers must acknowledge the profound impact of financial stress on their workforce. But, where there are challenges, there are also opportunities and, in this instance, employers have a unique opportunity to proactively support their employees by providing access to tailored financial resources and guidance.
Financial literacy serves as the bedrock upon which individuals build their paths to financial success. By investing in financial literacy initiatives and providing access for employees to tailored support and advice, forward-thinking organisations can empower their employees to navigate these turbulent economic waters with resilience and confidence.
At Threefold, we provide financial literacy education and tailored financial advice to companies that are looking to support their employees to achieve financial success. This includes running Financial Education Workshops and Financial Wellness Clinics:
1. Financial Education Workshops: Workshops and seminars for employees covering topics such as budgeting, savings strategies, KiwiSaver investment options, insurance policies, mortgage optimisation, preparing to purchase your first home, property investment, and understanding mortgage and insurance products. Depending on your workforce, we will tailor the content to your needs.
2. Financial Wellbeing Clinics: Individual check-ins with employees to assess their financial wellbeing and provide ongoing support and guidance. These check-ins can also serve as opportunities to address any emerging financial concerns or changes in circumstances and can include personalised guidance on managing debt, planning for major expenses like buying a home, re-financing or re-fixing a home loan, reviewing insurance coverage, optimising KiwiSaver investments, or preparing for retirement.
We also recommend that companies utilise and provide access for employees to local financial literacy organisations or government agencies such as the Commission for Financial Capability (CFFC) or Sorted.co.nz, which have a great range of online tools, calculators, and educational materials tailored to New Zealand’s financial landscape.
It is well documented that professionals who feel supported in their financial journeys are more likely to be engaged, motivated, and productive at work. They bring a sense of purpose and dedication that propels the organisation forward, driving innovation and success.
By implementing these initiatives, employers in New Zealand can empower their employees to make informed financial decisions, navigate economic challenges, and ultimately achieve greater financial stability and resilience.
Bookings
We are now taking bookings for our ‘Financial Education Workshops’ and ‘Financial Wellbeing Clinics’ for the second half of 2024.
We provide these services to companies that looking to support their employee’s financial wellbeing – often on a complimentary basis if a minimum number of attendees if guaranteed.
If you are interested in finding out more about these sessions, or if you would like to book a workshop or clinic, please email clientservices@threefold.co.nz using the subject ‘Employer Financial Education Bookings’.
Our capacity to run these sessions is limited and slots fill up fast, so make sure to get in early to book.
The content of this article should not be taken as financial advice, or a recommendation of any financial product. Threefold is not liable or responsible for any information, omissions, or errors present. We recommend seeking advice from a qualified financial adviser before taking any action.