Understanding different demographic needs
For most, personal finance is a complex subject to understand and be engaged with, despite knowing how important it is. For organisations, it is paramount to engage with employees about finance because poor personal finances often lead to poor workplace performance.
A quick reminder of what negative impacts on the workplace occurs when colleagues suffer financial stress:
These statistics are pre-covid; however, a recent survey showed that 43% of adults in the UK reported that their mental health had worsened since the start of the COVID-19 lockdown. This damage will be intensified now that the government’s financial buffers have ended.
Financial Education: One size doesn’t fit all
Your message must be relevant to maximise the level of engagement of your employees.
However, the one size fits all approach to financial education doesn’t work: the variety of different age groups, salary size and education levels within your organisation means a multi-stream path is best (This also can apply to employee benefits as a whole).
Whilst individual finances are unique; it is true to say that the different demographics are the best place to start, because, despite the variety of salary & education disparity, each demographic faces similar financial challenges.
This week we breakdown the different financial education needs for each group.
Financial Education: Employees Aged 18-25
There is a lot of learning on the job, and basic financial skills would allow employees to concentrate fully on the job. 1 in 6 workers under the age of 25 has admitted to defaulting on credit.
Using your employee benefits is a great way to make salaries go further and to introduce the subject.
Financial Education: Late 20s to mid-40s
With the increase in responsibility, education should ensure adequate income protection against adverse financial life events, saving for a rainy day and making retirement provisions.
Only 28% of working-aged people have some form of financial resilience through savings and life cover, the knowledge gap cuts across economic and education divisions.
Financial Education: Women & Primary Carers Pay gap
A special mention also to women who take career breaks to have a family. Women often lose out because:
In summary, a break in earning and saving to raise a family is often where the pay equality gap begins.
Financial Education: Late 40s onward
Employees in their late 40s onwards need to maximise their retirement provision, secure an income for later life and handle unexpected life events such as the early onset of ill health/ disability, redundancy, or the death of a partner.
Older people are much less likely to find work again following redundancy. Disability and poor health are preventing nearly half a million people, who are approaching retirement, from working.
Financial Education: Close to retirement
There is little in the way of financial education. However, pension provision becomes of critical importance. Accessing information online about the financial choices that are open can be a barrier.
Financial wellness with this age group can be tied in with basic IT skills, allowing greater control of their finances.
How can Employee Benefits Assist your employees finances?
Employee benefits will help responsible employers assist their workforce in several ways:
My Staff Shop will make a difference to your colleagues. For a free demonstration or to answer any question, please get in touch.