September 08 2022 | Simon Miller
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With personal finance headlines flashing across every social and news feed, financial education is quickly becoming a hot topic in the employee benefits space. There’s never been a more important time to support your employees with up-to-date, relevant impartial financial information.
But how do you find the line between advice and information?
As an employer, sharing advice is risky as it’s often tied into products and services - so the intention may be misplaced. Financial advice is, as defined by FCA, the distribution of a product. The fear is that there’s a conflict between ‘trusted’ advice and the underlining adviser model. This is where impartial education comes in.
Impartial financial education is one that is not linked to any financial products or services. This means that the education provider has no hidden agenda or conflicts. The provider doesn’t depend on making a sale to earn their living. As a result, a program’s financial advice won’t direct users to products that may or may not be right for them. That also means that an impartial financial education diminishes risk for users. In short, an impartial solution provides high-quality financial education, without the sell.
The business case for impartial financial education
Financial education isn’t part of the typical employee experience. In fact, 59% of people globally say that their employer doesn’t communicate with them regularly about how to improve their financial wellbeing. This means that employers - those who compensate individuals for their time with money - don’t talk about topics like budgeting, saving, and investing with their employees. In addition, beyond the traditional benefits, companies are more likely to thrive when their employees aren’t worrying about money.
Not only do employees feel more productive when they’re experiencing financial wellbeing, but employees who receive financial education are 23% more likely to stay with their employer.
As many companies navigate the challenges of a competitive business landscape and the Great Resignation, taking steps to ensure that employees are thriving financially, such as providing financial education, can prove to be a critical change-maker. In fact, 85% of financially healthy workers feel more productive at work.
By helping your people to identify and achieve their life goals, like buying a home, having a family or planning for the future, you can create an employee experience that motivates, rewards and creates a bond - beyond a salary increase.
Our latest eBook outlines how you can do just that with impartial financial education.