Productivity, wellbeing, and staff retention are suffering due to a dearth of financial literacy among employees in the UK, a new report has shown.
A survey of 2,000 British workers across major industries such as retail, manufacturing, and financial services, shows that less than half (44 percent) offer programmes to help employees make informed financial choices and boost their overall financial wellbeing.
The report by payroll and HR software firm Zellis also indicates a clear need for more financial education in the workplace, as the majority of workers (58 percent) don’t fully understand their payslips, while only a quarter (24 percent) look at their statement every month.
Many also struggle to access important information about their employment package, with four-in-ten claiming they don’t know the total value of their benefits and rewards, despite ranking it as the second most important factor after base salary when looking for a job.
Additionally, nearly a third (32 percent) of employees said they aren’t given enough information about the benefits available to them, while a quarter said the same about their pension options, preventing them from making choices that truly meet their financial needs.
John Petter, CEO, Zellis said: “The best organisations are creating a modern, cohesive pay and benefits experience for their employees, with financial literacy and wellbeing at the heart of it. Unfortunately, they are in a minority. There is a real need to focus on the basics of helping colleagues understand the true value of their employment package, including their payslips, workplace benefits, and pension options, as the evidence suggests a need to significantly improve awareness. Organisations that get this right will enjoy better hiring, retention and performance – as well as happier colleagues.”
Gethin Nadin, award-winning HR author and Director of Employee Wellbeing at Benefex (part of the Zellis group) added: “The UK has some of the lowest rates of financial literacy in Europe. Add to this the effects of austerity, stagnated wage growth, and increased borrowing, and employees are really struggling. With little support available elsewhere, all eyes are turning to the employer to assist.
“This research confirms that a wellbeing strategy which focuses on improving knowledge of financial products and employee benefits is much needed.”