EXCLUSIVE: More than three-quarters (77%) of respondents believe financial education in the workplace is helping employees to achieve better financial outcomes, according to research by financial education provider Nudge Global.
The financial education provider’s Employee financial education study 2014, which questioned more than 170 organisations that represent more than 850,000 employees, found that 63% believe it supports the corporate culture and values of the organisation, while 60% believe it improves the commercial awareness of the workforce.
Nearly half (43%) of respondents said that offering employees financial education helps them to better manage their own life and finances, which will have a positive impact on employee effectiveness in the workplace.
Some 34% thought giving staff the know-how to get through tough financial situations and decisions would reduce sickness and absence due to stress-related illness.
The research also found:
- More than a half (55%) of financial education programmes only cover employee benefits and do not offer wider support.
- Among respondents that have implemented financial education, 76% were unsure of the actual cost.
Tim Perkins, a director of Nudge Global, said: “Among a number of eye-opening findings from this research, there is a clear standout for us
“Financial education is not only helping employees achieve better financial outcomes, it is also solving and supporting critical business issues.”
Jeremy Beament, a director of Nudge Global, added: “The high number of respondents who are directors or ’heads of’ demonstrates that financial education is catching the imagination of senior stakeholders, and allowing HR and reward executives to have strategic conversations with their business leaders.
“This isn’t transactional HR, it is transformational HR, supporting wider business improvement.”