Employee financial well-being is a very significant part of employee personal growth and development. It is beneficial for the organization as well as improves the standard of living of employees as will be their job satisfaction. The present research focuses on providing a framework for enhancing employee financial Wellness by developing an hour-integrated robo-advisory tool. This tool is in the form of a conceptual model which is analyzed based on responses of respondents on a certain set of dependent, independent, and moderating variables. After running calculations on the frame conceptual model, it was found that there was a statistically significant relationship between employee financial literacy and employee financial Wellness; organizational support for financial Wellness initiatives and employee financial literacy; robo advisory tool and employee financial literacy; robust advisory tool and employee financial Wellness. Rest all other relationships were found to be statistically insignificant because their significance level was greater than 0.05.
TopIntroduction
In today's fast-paced corporate landscape, employees frequently face a multitude of stressors that can significantly impact their well-being and performance. Among these, financial stress emerges as a particularly noteworthy concern (Cull, 2022). The repercussions of financial stress are not limited to personal lives; they extend to the workplace, affecting performance, efficiency, job satisfaction and health (Wang et al., 2021). Recognizing the critical nature of employee financial wellness, organizations are increasingly seeking innovative solutions to address this issue. Recognizing the adverse effects of financial stress on employees, companies can adopt several strategies to help mitigate these issues. One approach is through the implementation of Financial Wellness Programs, which offer financial education, planning, and counseling (Hooda et al., 2023). These programs empower employees to manage their finances effectively, thereby reducing stress levels. Employee Assistance Programs (EAPs) can also be beneficial, providing support for mental health issues related to financial stress. Additionally, offering Flexible Benefits that cater to individual financial needs can help alleviate financial burdens. Creating a Supportive Work Environment is also crucial, as fostering a culture of open communication and support can help employees feel more secure and valued (Kobets, 2022).
In addition to these strategies, integrating HR with robo-advisory tools can be a proactive step toward enhancing employee financial wellness. Such solution gaining traction is the integration of HR with robo-advisory tools, designed to help employees manage their finances more effectively (Aggarwal, Sharma, et al., 2023; Poonam & Aggarwal, 2023). Robo-advisors, digital financial advisors, offer advice or manage investments with minimal human intervention (Ge et al., 2021). While intended to operate with minimal human input, most robo-advisors in India still employ basic questionnaires to understand investor behavior. These tools use algorithms to analyze and predict investor preferences, risks, and goals, typically by asking a set of psychographic and demographic questions that lead to a model portfolio. Comprehensive robo-advisors go a step further, seeking more detailed insights through AI and data analysis. They analyze financial transactions, including investments, bank activities, and credit card transactions, to understand the investor's actual financial behavior (Salampasis, 2017). These advanced tools assist in assessing financial behavior and predicting responses in specific situations. By leveraging technology and data-driven insights, organizations can provide personalized financial guidance to employees, helping them make informed decisions and achieve greater financial stability (Aggarwal, Kaur, et al., 2023; Aggarwal & Agrawal, 2024).
This paper aims to explore the concept of employee financial wellness and assess the role of HR-integrated robo-advisory tools in its enhancement. Through a thorough review of existing literature and case studies, this paper intends to shed light on the advantages and challenges associated with the use of robo-advisory tools in HR practices (Zhang et al., 2021). Furthermore, it will outline best practices for the integration of these tools into HR and offer recommendations for organizations seeking to bolster employee financial wellness. The significance of this paper lies in its contribution to the current body of knowledge concerning employee financial wellness and HR practices (Wexler & Oberlander, 2020). By emphasizing the potential of robo-advisory tools to enhance financial wellness, this paper aims to assist HR professionals and organizational leaders in making informed decisions regarding the implementation of such tools. Ultimately, this paper strives to enhance the well-being and productivity of employees by advocating for financial wellness in the workplace (Darskuviene & Lisauskiene, 2021).