Financial Education for Today’s Workforce - 2014 Survey Results
In the past we have provided you with information on the results of plan member/participant-focused surveys, which showed an increased need for financial literacy education on retirement savings and personal finances as a whole. We find it interesting that the Financial Education for Today’s Workforce survey, prepared by the International Foundation of Employee Benefit Plans (IFEBP), comes from an employer’s perspective and yet the results are similar.
The results showed that three in five Canadian and American employers believe their employees face more personal financial challenges today than they did five years ago. It also revealed that most employers rate the financial savviness of their workforce as medium to poor and find their workers ill-prepared for retirement.
Employers recognize how an employee’s financial issues can have a significant negative impact on job performance, particularly as it relates to stress levels and the ability to focus in the workplace. Accordingly, nearly two in five employers feel a responsibility toward educating their employees on financial issues and helping them become financially literate.
Additional findings from the survey include the following:
- Half of all organizations have experienced an increased demand from participants for financial education in the past five years.
- More than one-third of organizations offering financial education have only started to do so in the past five years.
- The two most commonly cited financial challenges affecting employees were saving for retirement and credit card/other debt.
- Respondents found success with group education sessions, but rated one-on-one meetings as the most effective method for providing support to participants.
Employees are looking to employers for assistance with budgeting, planning for retirement and an explanation of their benefits. They are also using a variety of resources aimed at improving the physical and mental wellness of their employees. We need to see continued growth in these areas as financial education becomes more vital for an employee’s well-being and positively impacts today’s workforce.
View the IFEBP survey results.
For more information about financial education for your employees, please contact your Pension Consultant at 1-866-912-6926.