Only 12% of employees have used financial wellbeing support provided by their employer, despite a substantial increase in the proportion of workplaces offering such services, according to research from Hymans Robertson Personal Wealth.
The research found that 54% of workers now have access to some form of financial wellbeing support through their employer, compared with 31% last year.
However, the low level of take-up suggests that expanding access has done little to encourage employees to make use of the assistance available.
Almost half of employees (45%) would welcome additional financial wellbeing support, although the findings indicate that communication, confidentiality concerns and personal preferences remain significant obstacles to engagement.
Some 16% of employees know their employer offers financial support but are unclear about what it includes. Meanwhile, 53% say they are uncomfortable discussing financial stress with their employer or manager, while 41% prefer to deal with their finances privately.
SUPPORT LINKED TO LIFE EVENTS
The research also indicates that employees are more inclined to seek financial guidance when faced with a particular challenge or significant change in circumstances.
Some 39% say they would use workplace financial wellbeing services if they encountered financial difficulties, while 24% would seek assistance during a major life event, such as purchasing a property or having children.
The findings suggest that employers could improve engagement by making financial guidance more relevant to everyday decisions and communicating its availability at points when employees are most likely to need assistance.
Steve Butler, head of corporate at Hymans Robertson Personal Wealth, said: “It’s positive to see that more employees know about the financial wellbeing support they can access at work. However, the research shows that employers have more work to do around increasing uptake.
“Provision alone will not improve outcomes and employee wellbeing. In the round the research points to awareness, relevance and trust as being significant barriers.
“Employers should ensure that they’re regularly communicating what is available, how it can help and how confidentiality is protected. Support also needs to feel useful before someone reaches a crisis.
“Connecting it to everyday decisions and key life events can help employees build confidence and resilience earlier.
“With almost half of employees asking for more support, organisations have a clear opportunity to close the gap between availability and take-up. Accessible, inclusive and well-timed support can make a meaningful difference to employee wellbeing and long-term financial outcomes.”
