Standard Life launched Insights into Financial Responsibility (IFR). It defines how financial behaviours are changing in the relationship between employers and employees. The research is set against the context of recent financial volatility and forthcoming pension legislation change. The IFR provides insight into the role of the workplace in taking control of financial security.
The IFR has been developed in partnership with leading Occupational Psychologist Emily Hutchinson. It addresses the issues of financial planning, employee communication and financial responsibility. The research is based on a survey of 250 employers and over 1,000 employees within the UK’s largest companies.
Amongst the key findings was that eight in ten employers feel responsible for their employees’ financial security with nearly a quarter (22%) feeling it is their primary responsibility.
According to the IFR, employers believe that employee communication has improved over the past five years (65%). However, almost the same number (64%) of employees felt that either nothing has changed or the situation has deteriorated.
Though when asked about support with financial planning, three quarters (75%) of employees stated they would value more help from their employer. Two thirds (64%) of employers said that they thought offering help through financial planning would make them more attractive to potential new employees.
The IFR was published yesterday to coincide with the launch of Lifelens by Standard Life, an innovative employee pension and benefits portal. Lifelens has been developed based on extensive employee and employer insight. It is the first platform to address employer needs around cost management, benefit provision and administration efficiency with employee needs around pension savings, benefits and education/information. Lifelens provides a one stop portal for employees, making it easier to view and manage their benefits.
Gerry O’Neill, Managing Director, Corporate Solutions at Standard Life said: “The Insights into Financial Responsibility provides new and meaningful insight into the employer-employee relationship and its influence on financial behaviour. What’s clear is that since the downturn, employers feel more responsible for their employees’ financial security and employees in turn are looking to their employers for help with financial planning.
“Interestingly, employers seem to think they are doing a good job when it comes to communicating with staff. This isn’t the view of many employees and shows that more needs to be done to increase volume and improve quality of communication, in particular around financial issues and the benefits available. Against the backdrop of a reduction in government support and the closure of final salary schemes, it is critical that employers take on a new active role in helping their staff plan for the future.”
Emily Hutchinson, Occupational Psychologist, said: “The Insights into Financial Responsibility reveals that although it is recognised that the individual is primarily responsible for their financial security, they would happily benefit from help in planning and securing that.
“However 90% of both employers and employees feel there is a role that the employer should take in supporting individuals to secure their financial future. This is a fascinating insight into the pressures and expectations felt by both sides of the debate.”
Additional findings from the IFR include:
– Two in five (38%) employers expect their employees to spend more than 10 years at their organisation. Just under half (48%) of all employees expect to spend more than a decade with their employer
– Over half (56%) employers think the role of providing support and security to employees is more important than five years ago
– Eight in ten (81%) employers agree that providing benefits increases the level of employee engagement. Two thirds (66%) of employees agreed that benefits increase motivation at work
– Two in five (40%) employers believe over half of their employees take full advantage of the benefits available to them with one in three (30%) having no idea about the level of uptake of benefits. Only a quarter (25%) of employees say they make full use of their benefits.
Source : Standard Life Press Release
