52% do not provide financial education for employees

More than half (52%) of respondents do not provide any financial education to employees, according to research by employee benefits adviser firm Secondsight.

Pension advice

However, the research also found that two-thirds (67%) of the 1,013 UK employees surveyed claim that they do not receive financial education from their boss, and 77% of those aged 55 and over, said they had not received any financial education.

Of the 250 HR professionals surveyed, half stated that their employees had requested financial education at work.

In addition, less than 20% of employee respondents have a solid financial plan for their future, while 38% have a vague idea about how to manage their money and only 11% know how much they require to retire on. Most have no idea how much their pension is worth.

Less than a quarter (22%) of employee respondents have a financial adviser, and 6% rely on a friend for financial guidance.

The research also found that 73% of employee respondents said the workplace financial education offered to them made them feel more positive about their employer, and 23% stated that it made them feel more loyal.This rose to 43% among 16-24 year olds.

When it comes to employer respondents’ view of financial education, 51% said that they offered financial education to improve employee engagement.

However, 39% of employers said that the service is expensive and 38% believe it is not something they should have to provide.

Overall, just over half (52%) of employer respondents think it is employers’ responsibility to provide financial education to staff.

Darren Laverty, director of sales and marketing at Foster Denovo, said: “Clearly employee demand for financial education is not being met. Organisations need to place real emphasis on the need for financial education in the workplace; the trends are worrying. This is an excellent opportunity for employers to engage their staff and reap the benefits.

“The market has changed, the economy has declined and wages have flat lined as cost of living has gone up. People are feeling less well off than they used to be. The appetite for financial education is so strong that the market cannot deal with it.

“It can be achieved at a relatively small cost and should be seen as an investment, because benefits significantly outweigh the costs.

“It is particularly important to provide financial education to young people, who may be saddled with student debts and struggling to get on the housing ladder. If [organisations] help younger members of staff, they are inclined to be more loyal.”