One in three workers feel financial worries affect their performance at work

FINANCIAL EDUCATION PROGRAMMES

One in three workers feel financial worries affect their performance at work

At least a quarter of employees are worried about debt, with one in five reporting they are being kept awake at night by financial worries. These are the findings of new research from the Institute for Employment Studies, which recommends that financial education programmes for staff should be more widespread and accessible.

IES surveyed workers in both the private and public sectors. It found that over 30% of workers do not feel in control of their finances, and that those in poor financial health are the least likely to use the financial education offered by their employers.

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Key survey findings

• 40% of employees had made use of financial advice - but they are most likely to use sources of information like independent financial advisers and banks or building societies rather than specialist sources like debt advice charities.
• Just 15% had made use of financial education programmes run by their employer, and those at higher risk of suffering from poor financial health were least likely to use them. But employees who had participated found them useful.
• While two-thirds of staff are planning their spending with budgets, just half of these stick to them. People who are vulnerable to, or already have, money problems are most likely to attempt budgeting.
• Only around a third of people surveyed felt positive about their financial future, and less than a third of respondents thought they would have sufficient savings for their retirement.

A final word

“Employees who report better financial well-being are more likely to report increased productivity. Now more than ever, people are going to need help and support to better manage their finances. Employers are in a good position to do this, and offering even basic information about taking care of your money will go a long way. It’s really important to think about how people who are in most need of financial advice can access it easily.” - Annette Cox, report co-author  and associate director at the Institute for Employment Studies.

Want to know more?

Title: Financial Well-being in the Workplace, A Cox, H Hooker, C Markwick, P Reilly, Report 464, Institute for Employment Studies, March 2009.

Survey details: The research comprises a wide-ranging review of existing literature on this topic, plus surveys of over 1,900 employees in the UK, from both the private and public sector. Surveys were conducted during the summer of 2008, at the onset of the global financial crisis, among organisations that had invested in financial education programmes.

Availability: To purchase your copy go to www.employment-studies.co.uk/pubs/report.php?id=464.

IES is “the UK’s leading independent centre for research and evidence-based consultancy in employment, labour market and human resource policy and practice.” It is not-for-profit, with its activities funded through research, consultancy commissions and a corporate membership programme. To find out more visit www.employment-studies.co.uk.