The Coddle Culture

“Have you cleaned your teeth? Eaten breakfast? Are you getting enough water?” You might ask your children these questions – but should you be doing the same with your employees?

What your employees eat, drink or otherwise do with their bodies is entirely their own business, provided it doesn’t have a negative impact on their ability to function at work. So the idea that employers ‘should’ be involving themselves in the financial business of their workforce is one that I find at best patronizing and at worst, a risk to the company.

Let me tell you why. Firstly, I try to employ adults. They might be young adults and come from all spectrums but they are adults, and I expect that they can take care of themselves and make their own decisions about what is best for them and their families.

Secondly, and importantly, we are not regulated by the Financial Conduct Authority to give financial advice. We trust our pension provider to give pension advice – that is what we pay them for. If one of your employees was looking for replacement windows would you advise them on the best company to use? Or a garage? No, you wouldn’t – you might have a passing conversation and share an experience as colleagues do, but it’s not your responsibility or place to tell them what they should be spending their salary on, or how. The same goes for bank accounts, credit cards and mortgages.

The trouble is that HR departments frequently view themselves as carers and social workers, rather than a business centre that exists to ensure the business runs smoothly and profitably. This is often why HR departments are seen negatively. You can care about employees – most of us wouldn’t be in the role if we didn’t – but ultimately we run businesses, not charities. If the business thrives so does its employees.

If an employee gets into financial difficulty there is advice to be had – Citizen’s Advice is probably the most notable and there is nothing wrong with pointing the employee in the right direction. However, again, we are not debt counsellors and cannot and should not be negotiating on behalf of an employee.

Don’t get me wrong; I believe that we should be educating young people on financial decisions while they’re still at school, and before they get their first grant or payslip and spend it all on new shoes or the Student Union bar, or worse are inundated with offers of credit cards with massive interest rates (Note: I once spent an entire week’s wages on a pair of trousers from Chelsea Girl. I was very well presented but quite hungry for a week. Lesson duly learned).

When my company looked at employee benefits we quickly came to the conclusion that not everyone wanted – or could use – a gym membership or private dental care. We made the decision to create a reward system that gave every employee an extra amount in their monthly pay packet that they could choose to spend on whatever they like.

It works well: some employees do purchase gym memberships, others decide to fund a new car or put it into their holiday savings. Some choose to top up their pension contributions… it’s all about choice. And we’ve had no complaints yet.

If an employee comes to me with a financial question I am happy to recommend a professional adviser, the same way that I might suggest a solicitor for a legal problem.

I was once asked to create a policy regarding the age-old tradition of bringing cakes into work to share on an employee’s birthday. The employer in question wanted to create a rule that only fruit was brought in because it was healthier. The expression ‘fun sponge’ springs to mind. HR departments should stick to parenting their children not their employees; when we expect people to behave as adults they generally do and if they don’t? We have processes for dealing with that.

Press harder for financial education when it most matters: in secondary school and in the home, and let the grown-ups get on with living their lives as they choose.

Kate Foreman’s article was first published in HR Magazine in August 2018.

About the author

Kate is the chairman and co-founder of RWA and has worked for the company for nearly 20 years. She is a fan of developing practical, workable, business-led policies and procedures. Kate has specialist training experience within the financial services sector, including major general insurers, and the Lloyd’s underwriting and broking market. She has researched and developed numerous training programmes, both for commercial and in-house use. She has extensive experience of developing in-house and public training programmes for business skills, including Diversity, Employment Law, Management and Leadership, Motivation, Coaching and Feedback, Communication Skills and EQ.

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