A recent whitepaper by Weavr, entitled "Flexible benefits cards: Employee choice, business control", has provided valuable insights into the transformative impact of fintech, particularly embedded finance, on business applications tailored for human resources (HR) teams and employee benefits schemes. The report highlights that a significant 50% of benefit managers across the UK are actively seeking new solutions to enhance employee benefits offerings, with 60% indicating a preference for specific fintech solutions like “spendable benefit cards”.
Spendable benefits cards are poised to become a staple feature within HR technology, as per the findings of the Weavr report. This innovative financial solution allows businesses to manage payments and benefits in a more structured manner. HR and benefits managers can allocate a budget to employees while establishing governance on the permissible usage of these funds. This approach enables employees to access more personalised and relevant benefits, enhancing their overall experience.
The features of spendable benefits cards include employer-branded debit cards available in both virtual and physical forms, the ability to make contactless payments through mobile wallets, and customisable spending rules that enable managers to enforce policy adherence. Moreover, real-time transaction control and visibility add an extra layer of oversight for organisations.
The report anticipates that the application of spendable benefits cards will extend beyond traditional benefits platforms, finding relevance in diverse areas such as employee-engagement platforms, reward and recognition systems, and newer employee-centric super apps. Alex Mifsud, CEO and co-founder of Weavr, stated, “Benefits have become an essential tool for employee engagement in the UK and employee expectations have rapidly evolved to match their experience as consumers. To meet these expectations, new approaches, powered by modern retail payments technology, are required.” He further noted that 72% of UK Software as a Service (SaaS) companies are already preparing to integrate embedded finance, highlighting the early adoption within HR and benefits technology sectors.
The study, conducted by Censuswide on behalf of Weavr, surveyed 250 benefits managers from organisations with a workforce of 50 or more employees across the UK. The research identified two primary challenges faced by benefit managers: rising business costs that are impacting the quality of available perks, which concerns 27% of respondents, and a significant shift to remote work, also reported by 27% of those surveyed. Importantly, 80% of benefit managers noted that they have staff who work outside the headquarters' country, indicating a growing trend towards a flexible and global workforce.
Comprehensive insights into the findings can be accessed on Weavr’s website, where the full report is available for download.
Source: Noah Wire Services