What does “financial education” actually mean? It’s knowledge to help you make effective financial decisions. But why is this relevant to employers? Well, research shows many correlations between finance and wellbeing.
We know that a happy workforce is in any employer's best interest! To this end, it would be fair to say that financial education should be a key part of any employer's wellbeing and benefit strategy.
What happens when employees are stressed about their finances?
One of the main impacts of this type of stress is on sleep; and lack of sleep can hugely affect our wellbeing.
Of a report (Changing trends of financial wellbeing):
- one in five worry about their finances at least once a day
- around one in nine worry about it constantly
- more than two fifths admit to having lost sleep
- 45% of those aged 18-24 have suffered mental health problems as a result of money worries
What impact does this type of stress have on productivity?
There are so many ways in which we can measure productivity that it can be hard to comprehend it in “real terms”. The Money and Pension Service estimated that we lost £120.7bn and 17.5m hours to financial stress in 2016. And, in 2018, 11% of UK employees said that their productivity had declined over the last three years because of poor personal finances; these figures are unlikely to have improved since the Covid pandemic causing financial uncertainty for so many.
What do employees want?
To work this out, you need to be looking at what employees worry about the most. Research shows that this tends to be:
- Adequate savings for retirement
- Savings, incase they lose their job
- Debt repayments
- The payday cycle
Employers might therefore consider (for example) financial coaching and advice to help employees learn about saving for the future, loans and budgeting.
What’s on offer at Wider Plan?
We are committed to helping you, help your employees. We can offer your employees financial education including a financial health check and coaching, through FCA regulated advice. Information on offer includes (but is not limited to):
- Income protection
- Life insurance
Whether you want to look after a small team or a corporate sized organisation, we can help. To speak to a member of our team, please contact us.