EXCLUSIVE: The proportion of respondents that offer, are in the process of introducing or are considering offering financial education in the workplace has risen by 121% in the past year, according to research by Nudge Global.
Its Financial education the definitive guide 2015 report, which surveyd 252 HR and benefits professionals, found that 75% of respondents now offer, are in the process of introducing or are considering financial education compared to 45% in 2014.
The rise has been driven by legislation such as pensions auto-enrolment, the new pension freedom reforms and issues such as workforce planning.
In addition, 79% of respondents believe financial education improves employees’ awareness of, and engagement with, their employee benefits.
A further 74% said financial education also improves business performance.
Content of programmes
The research also found that the content of more than half (56%) of respondents’ programmes are personalised in some way.
Where respondents’ schemes included personalised content, take up stood at an average of 91%, compared to just under 40% for schemes offering more generic content.
For personalised programmes that will be introduced in 2015, usage is anticipated to reach 76%.
More than three-quarters (78%) of the schemes due to be launched in 2015 will include content relating to pensions, employee benefits and personal finances.
But more than half (53%) of employer respondents, which offer programmes that do not cover personal finance issues, plan to review this in the next 18 months.
The research also found:
- 73% of respondents believe employees want financial support.
- 89% of respondents feel that employees do not appreciate their benefits as much as they should.
Employers in the legal, financial services and technology sectors have been the most likely to introduce financial education in the past year.
Tim Perkins, a director at Nudge Global, said: “By tracking the market over the last two years, we predict that the next 12 months will see three things: continued triple-digit market growth, increasingly comprehensive programmes that focus on wider personal finances as well as pensions and employee benefits, and also an increase in personalisation.
“This year will be the tipping point where financial education becomes the provision of the majority rather than minority.”