Nudge’s “Financial Education Yearbook 2016/17” reveals 63% of HR and Reward professionals believe that the impact of Brexit on the UK economy will drive employee demand for Financial Education.
Employers foresee 15 different factors driving employee demand for Financial Education in the workplace in 2017, from helping employees save towards their goals (65.5%), to the impact of Brexit on the UK economy (63.4%) and fears over their job security (38.6%). These are some of the findings from Nudge’s “Financial Education Yearbook 2016/17” report, published today, that researched organisations employing over 947,000 people in the UK.
Acceptance of the business case for delivering Financial Education in the workplace has transformed in recent years with 31.5% of employers already providing it, and more than half (54.3%) saying that they are in the process of, or considering, introducing it. Technology remains the preferred method of delivery for Financial Education both for those already offering it, and those planning to.
The majority of employers feel that responsibility for the Financial Education of their people is shared between employees themselves (88.4%), them as an employer (86.3%), the Government (73.3%) and the education system (69.2%).
Tim Perkins, Director at Nudge comments: “It’s clear that we now have agreement that Financial Education is a lifelong priority that should start in school and continue throughout a person’s working life and beyond. Although it’s positive to see such widespread understanding of the business case for providing Financial Education, the gap between aspiration and support currently provided remains wide.”
“In 2017, we can already foresee 36 different events that will impact on people’s Financial Education needs, as varied as the new “sharing economy” tax and the reduction in Money Purchase Annual Allowance. Employers need to ensure that they have the support they need to educate their people in line with the changes, or face the consequences in terms of the impact of poor Financial Wellbeing on their levels of employee engagement and productivity”.
Tim continues: “The Financial Education market has seen phenomenal growth in the past 5 years. Buyers now know what they want from their supplier. More than 9 in 10 (92.5%) organisations believe that it is important for their supplier to be independent of provider or product bias, driven by the responsibility they feel for protecting their people from being sold financial products at work, with three quarters of employers (75.7%) viewing this as their responsibility.”
The majority of employers also recognise the importance of personalising Financial Education in line with 9 different variables as varied as age (82.9%), financial goals (78.1%), benefit choices (54.1%) and level of expertise (55.5%), to ensure that employees are engaged by it.
A full copy of the Financial Education Yearbook 2016/17 can be downloaded here.
About the Yearbook
Nudge’s Financial Education Yearbook 2016/17 is based on:
- The insight of research with UK organisations employing 947,000 UK employees, conducted between September-November 2016.
- Data analysis from the Nudge Community.
- A quarter by quarter 2017 personal finances planner, that details the expected changes and events that will impact on Financial Education needs this year.
- A review of the major personal finance events that occurred in 2016 and who they impacted.