Providing employees with financial education has become a focus for employers and is it growing in popularity as an added benefit. According to Nudge Global’s Financial Education: The definitive guide 2016, 50% of those who responded to the survey are considering whether to introduce a financial wellbeing programme – a 30% rise since 2014.
The research also found that the amount of employers who are not supporting employees’ financial wellbeing has dropped 6% from 2014 to just 1%. Reasons for this include new pension changes which require a greater level of understanding and also a focus on the wellbeing of employees.
Both employees and employer’s discover the benefits of incorporating a scheme into the business – the workforce is often happier and are not worried about finances, providing a greater sense of security which in turn boosts performance.
Clear plan and delivery
Before implementing a programme, employers should focus on what type of content to include and in what way it should be delivered. Some of the information that companies feel they need to push will be around the benefits they offer, pensions, salary arrangements, voluntary benefits and share schemes.
A vast amount of information can be difficult for employees to truly take in, so the company needs to have a strategy to work out how they are going to make sure each individuals needs are met.
Meeting individuals needs
Some employees might find more personal advice suits them – this could be assisting with saving money, advice on dealing with debt or how to get on the housing ladder. Firms may feel the need to operate on a more customisable approach, particularly if it is a sensitive area – such as a workshop on dealing with debt.
However, for larger firms, knowing the ins and outs of the type of financial education that is required for each individual staff member may prove difficult. Providing a neutral email, letter or newsletter inviting anyone to attend a workshop if they would like could be a possible solution. It’s also important to remember that older workers may require different support to recent graduates, meaning employers need to recognise if a one-size-fits-all approach is applicable.
Alternatively, employers could provide a presentation to as many of their workforce as they can and run through lots of financial topics, such as retirement planning, mortgages, debt, estate planning and investment, ensuring a wider approach.
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