Brazil Employee Benefit Trends Study 2018
Financial insecurity hurts the workplace
Since we last conducted our study in Brazil, we have seen how employees’ financial concerns are having an increasing impact in the workplace. 37% of employees now agree they are spending more time thinking about personal finances at work than they should. No wonder 82% of employers in Brazil now tell us that providing financial planning services is a very important goal for their benefits program.
Employers can create a more financially confident workplace by building employees’ sense of security beyond the paycheck. Positioning existing benefits as a means of offsetting employees’ financial worries around healthcare and retirement could have the added result of productivity gains for employers.
Employees are explicit: they want help with finances
Employers have an opportunity to try new approaches to financial wellness. These include basic tools for budgeting and financial planning, online tools for managing savings and learning about their options, employee assistance plans, and more sophisticated savings benefits, including those for retirement.
The full range of financial wellness benefits will differ hugely between young parents, for example, and those nearing retirement. Communicating and explaining existing benefits, particularly enhancements to medical and life cover, as a means of addressing financial worry around healthcare and retirement can also promote a sense of greater financial security.
Employees want more help with their financial security
Employees want your help — especially with retirement
Pensions remain relatively generous in Brazil and account for about a third of all government spending. Our study suggests that employees in Brazil are increasingly concerned about retirement and its financing, while employers seem much less prepared as compared to other markets, like Mexico and Chile.
Only 15% of companies in Brazil offer employees a savings scheme (it’s 85% in Mexico and 56% in Chile) and 24% have a pension plan (Mexico 78%; Chile 64%) – one of the lowest levels we’ve seen globally in all the EBTS conducted over the years.