6 steps to setting employees on the road to their financial goals

Financially educating employees helps boost job satisfaction and loyalty - and shows you care about their wellbeing

Helping employees grasp the importance of saving and investments, and how to navigate financial decisions, can create a more financially confident and engaged workforce.

Empowering employees with financial education offers several benefits:

Encouraging informed decisions: When employees have a good grasp of investment options, risk management and long-term planning, they can make wiser financial decisions that suit their goals, such as saving for retirement or funding education.
Boosting engagement and satisfaction: By offering financial education, employers show they care about their employees’ financial wellbeing, which can lead to greater engagement, satisfaction and loyalty, and ultimately in increased productivity and reduced turnover.

According to a survey by the CIPD in 2022, over one-quarter (28%) of individuals said money worries had affected their work performance.

However according to Standard Life’s Retirement Voice 2023 report, despite financial struggles, many individuals (62%) aren’t seeking support, emphasising the need for employers to take positive steps in supporting their employees’ financial wellbeing. This can significantly affect job satisfaction and performance.
Attracting and retaining talent: In today’s competitive job market, offering comprehensive benefits, including financial education, can help employers stand out and retain top talent.
Reducing reliance on pension plans: Educating employees about investment options beyond pensions encourages them to take more control of their later-life savings amid changing pension provisions.

6 steps employers can take to educate employees on their financial goals:

1. Interactive workshops

Organise engaging sessions led by financial experts to introduce employees to investing fundamentals, investment vehicles and protection products, and strategies for financial success.

2. One-to-one coaching

Offer confidential sessions where employees can discuss their financial situations and receive personalised guidance.

3. Access to online resources

Curate reliable online resources such as articles, videos, and interactive tools to facilitate self-paced learning beyond formal workshops.

4. Incorporate financial education into benefit packages

Emphasise the importance of financial knowledge, from everyday budgeting to investments, as part of the company’s benefits package during onboarding and regular communications.

5. Encourage retirement savings

Promote awareness of retirement savings options and employer-sponsored plans, highlighting the benefits of participation.

6. Encourage open communication

Create a supportive environment where employees feel comfortable discussing financial concerns and accessing available resources.

By embracing a thorough financial education strategy, employers can provide employees with the resources they need to make wise financial decisions. This ensures long-term stability and benefits both individuals and the organisation as a whole.

Hymans Robertson Personal Wealth (HRPW) is a subsidiary of Hymans Robertson. HRPW works with both individuals and those employers seeking to empower their employees in today's dynamic financial environment.