Exclusive: Just 4% of employees would approach their employer for financial support, and most would rather rely on family, partners or Google, according to new research by financial wellbeing firm Bippit.
The Inclusion Edition 2024, part of Bippit’s Dynamics in Financial Wellbeing research programme, found that a third (30%) of employees would turn to their family when facing financial worries, 15% would turn to their partner, 10% to Google and 9% to no-one at all.
The research found a perception gap between what employer-provided support and employees’ understanding of their benefits: a fifth (20%) of employees said that their employer provides no financial wellbeing benefits compared to 0% of HR professionals.
In addition, 31% of women said that they receive no support compared to 9% of men. Many employees aren’t engaging with the benefits on offer: 32% of women and 16% of men haven’t used the financial wellbeing benefits provided by their employer.
Bippit’s research also looked into the consequences of poor guidance. It found that almost two-fifths (39%) of employees in the UK have followed financial guidance that has negatively impacted them.
A quarter (26%) said that they followed advice found on social media. But, as this is unregulated, employees may be led to potentially unreliable or harmful information, warned Bippit.
Sam Lathey, CEO of Bippit, said: “Inappropriate guidance does not always mean guidance provided by bad actors. Employees do need to watch out for scams, but personal finance is complex and any guidance must be given in the context of our own personal financial position. The employer can play an active role in signposting employees to appropriate guidance, to avoid them turning to sources of support that may end up causing more harm than good.”
Andrew Berrie, head of corporate partnerships and leading workplace wellbeing at mental health charity, Mind, commented: “Bippit’s research highlights the importance of taking a person-centred approach to any employee engagement and support strategy. The link between money and mental health is well known. Poor mental health can make managing money more difficult and financial difficulties can make our mental health worse.
“The cause of financial concerns will vary within each workforce but could include things like debt, dealing with unexpected changes in life or not being well enough to manage finances. Likewise, the impact this has on mental health will vary from person to person. Organisations need to understand the financial challenges their workforce might face and how to support them.”
