According to research conducted on behalf of the CIPD (Chartered Institute of Personnel and Development), 58% of workers say they are facing obstacles in managing their financial situation. This rises to 72% of 18-24 year olds. A quarter of all employees reported that financial concerns were affecting their ability to do their job. The main barriers to financial well-being were cited as: only earning enough money to get by each month (29%); the perceived hassle involved to save money, eg switching energy suppliers (16%); finding the time to manage their money (13%); and difficulty in interpreting financial jargon (11%).
In light of these statistics, the case for employers to provide financial education in the workplace as an employee benefit is clear. We know that poor financial well-being impacts on health in terms of psychological well-being, stress and anxiety levels and that this in turn can affect productivity levels. Yet, only 42% of companies surveyed stated they had a financial wellbeing strategy in place.
Of course, tackling poor financial well-being is not a problem just for employers. Individuals ultimately have to take responsibility for managing their financial affairs and Government will need to offer support for those who slip through the net. But employers have an important role to play in improving their employees’ financial understanding and wellbeing.
Here at Brunsdon Financial, we can and do work closely with our clients to develop financial education opportunities for employees. Under normal circumstances (ie non-COVID), we offer finance workshops, benefit fairs and group presentations, together with bespoke literature (including posters, emails, flyers and desk drops). We can also introduce individual scheme members to our team of experienced Brunsdon Financial Advisers, for individually focused financial and wealth management advice. Although some of these options are currently restricted due to COVID19, we continue to offer similar support online or via video or telephone link.
We are passionate about providing financial education opportunities in the workplace so that employees understand the benefits available to them and are equipped to make better financial decisions for themselves. Ultimately, this benefits not only the employees but also their employers.
For further information or help to develop your financial well-being strategy, please do contact your Brunsdon Financial Consultant.
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Source 1: https://www.cipd.co.uk/knowledge/culture/well-being/employee-financial-well-being Source 2: https://www.cipd.co.uk/Images/financial-well-being-why-its-important-report_tcm18-17441.pdf Source 3: https://employeebenefits.co.uk/financial-education-sense-benefits/