Supporting employees with financial education
Motivating and retaining your employees is fundamental to the long-term success of your business. The wellbeing of employees is widely recognised as contributing significantly to the success of a business.
Wellbeing is defined by the Oxford English Dictionary as:
‘The state of being or doing well in life; happy, healthy, or prosperous condition; moral or physical welfare’.
With Coronavirus currently having a huge impact on businesses and the way employees work, wellbeing at work has never been more important. Many employees will be under a huge amount of stress, especially around their finances and the future uncertainty we are facing.
The Chartered Institute of Personnel and Development (CIPD) found that in a survey in 2017 poor financial wellbeing has a detrimental impact on employees’ health from increased stress levels and anxiety. In turn, this can result in lower productivity from poorer job performance and absenteeism.
1 in 4 workers report that money worries have affected their ability to do their job. (CIPD, 2017)
40% of all employees state that money worries have given them stress over the last year.
44% of women and 33% of men in the UK have felt anxiety caused by financial stress
What does financial education look like?
Our financial needs change as we go through life’s different stages. Every stage can bring uncertainty and employers can help improve employee financial health through the provision of financial education. By providing the tools to help employees understand their financial circumstances, employers help employees to be able to make informed decisions regarding their finances, whatever life stage they’re at.
Those employees who are at beginning their careers, from starting work to early thirties. They may need help to understand the basics of payslips, spending, budgeting, saving, borrowing and pensions.
For those employees going through to their mid-forties, they will have probably experienced some major life changes and have a developing career. These employees will need to consider the costs associated with getting married, starting a family, education and understand wider matters such pensions and investing. They will also need to understand the importance of protecting their family, should the worst happen.
For those employees in their mid-50s, they may be typically be in their peak earning period, with families growing up. They may be facing up to their retirement planning progress, reducing mortgages and considering intergenerational financial planning.
These employees have increased options as to how and when they retire. Many may want to take a ‘glidepath’ into an active retirement. They may want to understand their options and may also wish to protect their accumulated wealth and that of their family.
Employers who offer Workplace Financial Education are likely to have a more motivated, productive and less-stressed workforce, with increased financial wellbeing.
Lisa Vaughan FPFS
Chartered Financial Planner
Workplace Financial Education Specialist
Lisa Vaughan Financial Planning Ltd delivers a complimentary workplace education programme tailored to the needs of a business and its employees.
For further information about financial wellbeing support and workshops for your employees now or in the future, please contact Lisa Vaughan on 07570 068 039, email@example.com or www.lisavaughanfp.co.uk