Many companies are starting to find out that it’s up to them to offer financial education. While employees can get this training on their own — by talking to a financial advisor or attending seminars — the reality is that many don’t make the time to do this themselves.
Employees are also unsure of where to turn. A Proformative Inc. survey found that 74% of people don’t know which sources of financial information are trustworthy. When Canadians don’t know where to turn, they don’t get advice. According to our Financial Education in the Workplace survey, 51% of people haven’t sought financial advice in the last two years, while a Metlife report found just 33% of employees say they are in control of their finances.
Comprehensive financial education, though, does work. The Promformative report discovered that when employees receive financial education that matters to them, they’re 60% more likely to implement that advice than people who receive broad financial information.
So what do these statistics tell us? If employers leave it up their staff to seek out advice, they won’t get the help they need. Companies, then, need to step in and offer that financial advice. As we’ve written earlier (LINK TO OTHER BLOG POSTS) reduced stress has numerous work-related benefits, so improving the financial health of your workforce is good for your company.
It also helps that employees want their employer to offer financial education. We found that 87% of employees want financial education, 47% want employers advice around benefits, while 49% want education around retirement savings.
Of course, education can’t just center around pensions, benefits and retirement. The training needs to be comprehensive and cover everything from debt management and RRSP investing to education savings and tax planning.
If employees aren’t seeking out financial advice on their own, then it’s up to you, the employer, to provide it. Fortunately, it’s good for business. Numerous studies have shown that having a financially-literate workforce can help companies save money and grow their bottom line.
To find out more about financial education in the workplace, read the recently published whitepaper,Financial Literacy for Employees: Understanding What Makes An Effective Financial Education Program.