Employees’ financial well-being overlooked, according to CBAM

Employers in the UK are overlooking the financial well-being of their staff, according to the Close Brothers Asset Management Business Barometer.

The research, which surveyed nearly 900 employers across the UK, found that nearly half of employers have no financial well-being strategy in place.

Important

Despite financial well-being becoming increasingly important in companies, only 35 per cent of employers have a financial well-being strategy in place, whilst just 16 per cent are planning to implement one.

The survey also looked at how those who already have a financial well-being strategy in place are implementing it. Nearly 50 per cent have introduced the strategy via a financial education programme, 22 per cent through a financial advisor, and 29 per cent only provide debt management counselling.

The research identified the sectors that offer a financial well-being strategy. Manufacturing companies offer a well-being strategy the most at 44 per cent, compared to 29 per cent of recruitment companies and 29 per cent of construction companies.

Focus

Commenting on the research, CBAM Head of Financial Education Jeanette Makings stated that it is “disappointing” that employers are not incorporating financial well-being in more well-being strategies.

“Financial well-being is becoming even more important with the rise of defined contribution pensions, increasing longevity and the increased responsibility this places on all individuals to plan for their finances today and for their future. It needs to be a key focus for organisations who want to make a difference to their employees and to their overall business, helping growth and retention over the long term,” she said.