UK employers are overlooking staff financial wellbeing as a priority.
Just under half (48%) of employers do not have a staff wellbeing strategy in place, according to research by Close Brothers Asset Management (CBAM). 35% have one in place already, whilst a further 16% plan to or are currently in the process.
However, even amongst those who have wellbeing strategies in places, employees’ financial well is being overlooked. Despite the growing need and importance of it, only a quarter (23%) have considered addressing financial wellbeing specifically.
When implementing financial wellbeing, different approaches are taken. The report revealed that 49% of those who have a financial wellbeing strategy in place address it via their financial education programme, 22% involve a financial adviser and the remaining 29% provide only debt counselling service and an employee assistance programme. Looking at the various sectors and the likelihood of considering financial wellbeing, manufacturing comes out on top at 44%, in comparison to recruitment (29%) and construction (29%).
Jeanette Makings, head of financial education at CBAM, commented: “Employers play a central role in ensuring staff are well informed about how to make the most of their workplace benefits and financial options, so it is disappointing to see that financial wellbeing is not being incorporated in more wellbeing strategies.
“Financial wellbeing is becoming even more important with the rise of defined contribution pensions, increasing longevity and the increased responsibility this places on all individuals to plan for their finances today and for their future. It needs to be a key focus for organisations who want to make a difference to their employees and to their overall business, helping growth and retention over the long term.”