Brexit is just one of a number of factors driving an increase in employee demand for financial education, according to Nudge. Acceptance of the business case for delivering financial education in the workplace has transformed in recent years; a third of employers already provide it and more than half say they are in the process of introducing it.
Most employers also recognise the importance of personalising financial education, for example, tailoring it by age, financial goals, benefit choices and employees’ level of expertise.
Tim Perkins, Director at Nudge, said:
‘It’s clear that we now have agreement that financial education is a lifelong priority that should start in school and continue throughout a person’s working life and beyond. Although it’s positive to see such widespread understanding of the business case for providing financial education, the gap between aspiration and support currently provided remains wide.’
‘Financial Education Yearbook 2016/17’, Nudge, January 2017: http://nudge-global.com/FinEdYearbook
Meanwhile, three new reports from the CIPD and Institute for Employment Studies find that poor employee financial wellbeing affects employee health and productivity, in terms of overall job performance, loss of concentration, short-term decision-making and absence. The reports cover the why and how of employer support for financial wellbeing, offering guidance and tools on how to develop this capacity in the workplace.
Duncan Brown, Head of HR Consultancy at IES, commented:
‘With the removal of defined-benefit pension plans and the spread of flexible benefits, many employers have left their employees to fend for themselves in terms of their financial security and wellbeing. Insecurity, stress and lack of understanding and appreciation of their total rewards package are common results. Yet as our tools and case examples show, there can be many benefits to them in terms of higher employee engagement and performance from providing their employees with more help and support in this area.’