Increased Financial Education Demand
According to 70% of employers, the No. 1 financial challenge facing their workers is credit card and other debt.
The International Foundation of Employee Benefit Plans’ “Financial Education for Today’s Workforce: 2018 Survey Results” says other major concerns for employees are saving for retirement, paying for their children’s education and covering basic living expenses. The survey found that these factors take a toll on the workplace in the form of stress (79%), the inability to focus on work (64%), physical health concerns (36%), and absenteeism (34%).
When asked to rate the financial status of their employees, 40% of employers reported their employees as being only a little bit or not at all financially savvy, and 36% said employees are only a little bit or not at all prepared for retirement once they reach that age.
More than two in five employers reported seeing an increased demand for financial education among employees in the past two years. They are also answering the call. The report says 63% currently provide financial education for their work force, and an additional 19% are considering it for the future.
Among the employers that offer financial education programs, 24% reported having a financial education budget this year—significantly more than the 14% that had one in 2016. An additional 20% of employers are considering adding a financial education budget. More than half that do have such a budget are planning to increase it in the next two years. Of employers with a financial education budget, 20% are measuring the return on investment (ROI) of their initiatives, and another 29% consider measuring ROI in the future.
The most popular education methods used by employers that offer financial education include voluntary classes or workshops (90%), free personal consultation services (63%), retirement income calculators (59%), Internet links to informational sites (58%), and projected account balance statements and/or pension benefit statements (53%).
The survey found that employers offer financial education on a wide variety of topics, from life insurance and identify theft to student loan debt and end-of-life planning. However, the top five most common topics covered were retirement plan benefits, financial planning, budgeting, investment management and retiree health care.