Employee Benefits poll: Almost half (47.5%) of organisations revealed that they offer financial advice as an employee benefit, according to a survey of Employee Benefits readers.
The same number (47.5%) of respondents said that they do not offer financial advice as an employee benefit, while 5% said they were unsure.
Last month, Employee Benefits reported that 34% UK organisations admitted they do not offer financial advice, increasing to 51% of employers with fewer than 500 employees, according to Close Brothers’ Workplace Financial Wellbeing Service.
The research was carried out among 503 employers with 200 or more UK employees. It found that nearly half of respondents have no intention of introducing financial advice in the near future. When asked why, 27% cited the perceived risk of inappropriate advice given that may reflect badly on the organisation itself, 21% said the risk of selecting an unsuitable advice firm, and 23% said financial advice is not deemed an important workplace benefit.
When asked what would make them consider it, a third said they would need evidence that employees would take it up. The majority said financial advice is one of the top benefits they would like to help improve financial wellbeing, with just 12% offering full financial advice for all employees.
Jeanette Makings, head of workplace financial wellbeing at Close Brothers Asset Management, said: “Despite a clear call for financial advice in the workplace, it is evident employers that do offer it are not recognising all employees would benefit from this for all areas of personal finance.
“And for those that are still shying away from offering it as a benefit, the risk of individuals finding a suitable adviser on their own, with consistent quality, service and price, is far greater than the perceived risk of a workplace selected adviser providing inappropriate advice and possible repercussions on the organisation.”
