More than three in five Canadian and American employers believe their employees face more personal financial challenges today than they did five years ago, according to a survey.
To respond to these challenges, the International Foundation of Employee Benefit Plans (IFEBP) survey finds that employers are offering financial education programs to their workforce to increase their ability to manage their income and plan for retirement. Additionally, employers are recognizing the value of customizing their educational offerings to meet the unique needs of their workforce.
“Employers are finding that successful education depends on customization,” explains Julie Stich, director of research at IFEBP. “Offering education in multiple languages, to spouses, or based on specific criteria such as age, income or life events will increase interest and increase the number of employees who benefit.”
The survey also finds that most employers would rate the financial savviness of their workforce as medium to poor and their workers ill-prepared for retirement.
Employers also recognize how employee financial issues can have a significant negative impact on job performance, particularly affecting employee stress levels and the ability to focus in the workplace. Accordingly, nearly two in five employers say they feel a responsibility to educate their employees on financial issues and help them become financially literate managers of their money.
Additional findings from the survey include the following:
- half of all organizations have experienced an increase in demand from participants for financial education in the past five years;
- More than one-third of organizations offering financial education have just started offering this education in the past five years; and
- the two most commonly cited financial challenges affecting employees were trouble saving for retirement and credit card/other debt.
“Financial stressors weigh heavily on employees and have a direct impact on work performance. Employees are looking to employers for assistance with budgeting, planning for retirement and understanding their benefits,” says Stich. “Employers are using a variety of resources aimed at improving the physical, mental and financial wellness of their employees. We hope to see continued growth in these areas as financial education becomes more vital for today’s workplace and employee well-being.”
Nearly 400 Canadian and American employers participated in the survey.
The complete results are available on IFEBP’s website.
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