Two-fifths (43%) of employers are confident that they know how to support employees to achieve their financial goals, however, 60% of employees believe their employer is not interested in supporting them, according to research by Nudge Global.
Its annual Financial wellbeing report, which surveyed more than 11,500 employees worldwide, also found that 27% of respondents said their financial wellbeing stops them feeling engaged and 31% said it stops them feeling motivated at work.
Meanwhile, 84% of employer respondents agreed that financial stress impacts performance and 65% believe employees are content with their current financial situation. A majority (96%) of employers’ financial wellbeing objective is to improve productivity and performance, while 34% do not use any metrics to track their success.
Four-fifths (82%) of employee respondents agreed that a better understanding of money will help them achieve their goals, with 72% saying their goal is to manage their debt. Financial goals that respondents in Europe, the Middle East and Africa are working towards include feeling financially secure (92%), early retirement (58%), growing savings accounts (87%) and supporting family (79%).
A majority (88%) of employee respondents face at least one barrier or challenge in achieving their financial goals. The biggest ones are a lack of confidence and unexpected expenses (42%), followed by insufficient income (35%) and debt obligations (24%).
Over half (54%) of women aged 25-34 said they only have a short-term financial plan of three years or less in place, while 52% of men in the same age group have a long-term financial plan of three years or more.
Globally, 50% of women across all age groups experience financial anxiety, compared to 41% of men. In the UK, 67% of women aged 25-34 feel anxious about their current financial situation, compared to 43% of men in the same age group.
Andrew Mulder, people director at Nudge, added: “These findings highlight significant disparities in people’s abilities to navigate financial wellbeing challenges. This global trend offers employers an opportunity to understand the extent and underlying reasons for these challenges within their organisations. By doing so, they can help women build long-term financial security and feel more optimistic about their futures.”
