Evaluation Scotland Wales
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insight

Financial Well Being In The Workplace

Evidence type: Insight i

Context

In 2016 the Financial Advice Market Review (FAMR) recommended that the Financial Advice Working Group should work with stakeholders to develop and promote a guide to supporting employees’ financial health. Wider research had demonstrated a rise in employees’ financial worries overall, as well as the effect that such concerns can have on employee health and performance. The proposed guide was intended to refer employees to existing guidance or to financial advice, and offer employees tools to help them understand their finances.

The study

The project set out to consider how employers could create an environment to improve staff health, how to improve employer confidence in doing so, and how employers could encourage staff to use such services. The study focused on smaller employers (up to 50 full-time equivalent staff (but hoped to be relevant to larger employers). The project drew on a literature review, interviews with about 30 business leaders and experts, FAMR and Financial Conduct Authority experience. Between November 2016 and January 2017 it undertook five focus groups of eight employees, 200 employer interviews, and five focus groups of eight employers each. The sample covered all countries of the UK and was representative of target employer and employee segments.

Key findings

  • Both employers and employees recognised that staff came into work with financial problems, noting a tendency to “live for today” rather than to plan, but that there was a reluctance to discuss such matters. Smaller companies were most likely to consider finances a “personal” issue.
  • All employers understood the need for support – at least of meeting legal pension requirements. A range of further benefits were available, especially from larger firms. But a third of small firms offered no support and were more likely to suggest taking time off to deal with problems.
  • 7 out of 10 employers would direct employees to useful information if they could. They believed that staff were most concerned with debts, “keeping a roof over their head” and pensions.
  • 58% of employers were interested in a guide to support employees. Although many were wary of offering advice, they found sample content helpful. 20% were not interested in a guide.
  • Employees were also positive about the guide, especially pensions and broader money management topics, prompts to take action on financial matters, wills and life assurance, extra benefits and payroll matters.
  • Employers were interested in using the portal when they understood the impact of financial concerns on the business.
  • Both parties agreed that the guide should be simple and free of jargon, set out a clear purpose and make the case for supporting staff in this area. It should be available online and in hard copy, and supplemented by face-to-face support.
  • Some employers did not prioritise such matters and would need to be persuaded, so a communications strategy using trusted agencies (such as MAS) and business leaders was needed.

Points to consider

Methodological limitations:

  • The report is not clearly structured.
  • The report focuses on overall messages and quotes rather than statistics.
  • The use and development of the “guide” and “portal” are not clearly explained.

Generalisability/ transferability:

  • Provides general insight only.

Relevance:

  • Most relevant for employers and those looking to design financial wellbeing programmes for the workplace.

Key info

Year of publication
2017
Country/Countries
UK
Contact information

FCA website