Financial wellbeing research issued today by the money experts at Everywhen reveals that a quarter (24%) of employers offer no financial education to employees. This is a concerning figure given the financial uncertainties currently impacting many people across the UK, which could have a knock-on effect in the workplace.
What resources do you have in place, if any, to educate your employees about their finances?
| Financial wellbeing workshops | 34% |
| Employer paid financial advice | 27% |
| Bespoke pension webinar / presentation | 24% |
| Financial education video service | 20% |
| Financial coaching 1 to 1s | 20% |
| The Money app | 12% |
| N/A we don’t have any of these resources in place | 24% |
| Don’t know / not sure | 2% |
Sorangi Shah, client director at Everywhen, says:
“Providing financial education can make a huge difference to the financial wellbeing of employees, and this can have a knock-on effect to physical, mental and social wellbeing too, so we would encourage more employers to consider offering it.”
Over a third (34%) of employers offer financial wellbeing workshops to employees, which suggests that they recognise the importance of supporting financial wellbeing alongside all pillars of health and wellbeing. The research also asked about employers’ motivation in offering a workplace pension and this too indicates that the financial wellbeing of employees is increasingly important to businesses.
As an employer, what’s your main motivation for offering a workplace pension?
| For the financial wellbeing of employees | 31% |
| Compliance with workplace pension legislation | 23% |
| To be an employer of choice and aid recruitment and retention of highly skilled employees | 23% |
| To help employee engagement | 14% |
| N/A there is no specific business motivation | 8% |
| Don’t know/not sure | 1% |
Sorangi Shah says:
“It is very positive to see how important the financial wellbeing of employees is to companies, with it being the top reason employers provide a workplace pension scheme. In our experience, this represents a shift in emphasis – traditionally the focus was very much on compliance and meeting the auto-enrolment requirements but now there is more recognition of how a pension supports wellbeing. The fact that offering a workplace pension is seen as beneficial to recruitment and retention of highly skilled employees is also very positive and shows how finance-related benefits can support a company’s strategic aims and not just benefit employees alone.”
Knowledge not cash
It’s important that employers understand that financial education is not about giving more money but providing knowledge and empowering employees. It’s vital that employees in every age group understand the impact of financial decisions. For instance younger employees need to understand that the impact of opting out of a company pension could have a big impact in later life.
Provide a full spectrum
When looking to offer financial education, it is important for employers to consider offering a full spectrum of financial wellbeing support. Wellbeing workshops (offered by 34% of employers) are a great option and can cover a wide range of financial issues, including pensions, debt management, budgeting, mortgages and investments, and can help employees set solid financial foundations. While workshops are often generic, financial coaching (offered by one in five, 20%, of employers) can take this a step further and go into more detail . Financial advice (offered by 27% of employers) takes it to the next level, looking at an individual’s specific circumstances.
Sorangi Shah concludes:
“With a quarter of employers offering no support for financial wellbeing, we would encourage them to consider investigating the options. And if those employers who are doing one thing, could consider doing more, then better still. There is no such thing as too much financial education, and feeling financially competent is a huge part of overall wellbeing.”
