Over half of Britain’s workforce (55%) want employers to help with their financial planning, according to a new study carried out amongst 10,000 UK employees and 500 employers.
In addition, the research found that over a third of employees surveyed have less than a month’s salary saved! And within that group, 14% have no savings whatsoever. Almost one in five (18%) are not saving any of their monthly salary.
Younger people in particular are keen to get more support from the businesses they work for. Over 72% of 18-34 year olds said they would value financial planning information and help. Only 25% of those who were 65 and older wanted help.
What does it mean for business?
Financial concerns can lead to stress, mental health issues and extended absences from work costing UK businesses an estimated £120.7bn every year, but up to now, many firms have been reluctant to get involved with financial education for employees due to concerns this could be seen as intrusive or unwelcome. Also, it has to be said that many employers have little appetite to pay for employees’ financial advice or education, even though they recognise the benefits of it. But it now seems that most workers want more help. Over a third (39%) of those surveyed said that they would value savings benefits if they were provided.
Employers need to stop thinking of employees’ finances as a taboo subject and look at new ways to help them by providing information, education, or products and services which could help them manage their finances.
Clearly, as the primary source of income, employers are in a great position to reinforce the importance of regular saving, through financial education and providing support to help employees choose the right products for their needs.
Of course, providing financial education is a responsibility! Brunsdon Employee Benefits Ltd. specialises in providing workplace financial education and can remove that onus from you. If you’d like further information or wish to discuss your company’s current workplace financial education programme, please contact your Brunsdon Financial Adviser.
Please note that this article does not constitute specific advice. Brunsdon is not responsible for the content of third party web sites.