Findings from our past two employee benefit surveys have shown that employers believe there is an ever-increasing need for education, mainly due to changes in legislation that can affect their employees.
However, overall we found that there has been a decrease in the number of employers providing financial education assistance (57% in 2015-16 to 54% in 2016-17).
The number of employers who do not offer any support has increased, and the number that believe the provision of education is not their responsibility as an employer has also increased. It appears that some employers are still yet to be convinced of the power of financial education.
Another interesting finding from our survey this year was that stress is a huge problem in many businesses, with 64% saying it has been a problem in the last 12 months alone1. We know that a leading cause of stress in the UK is “the amount of money people have to live on”2, so if employers can provide financial education to help their employees be better with money, they can reduce stress. Reducing stress is likely to lead to reduced absence which costs any business money. Reducing stress, and showing your employees that they are valued is also likely to increase engagement and productivity. We have also found that providing tailored, relevant education has led to an increase in positivity towards employers3.
Providing financial education benefits employees in numerous ways through reducing stress and improving their money management which has an impact on many areas of their lives. But it also has benefits for employers too by not only reducing costs and improving ROI of benefits packages, but also assisting in creating a happy, engaged and productive workforce.
1 JEB survey 2015-16 and 2017
2 Statista 2015
3 Financial Education for under 30s