The financial well being of employees is fast becoming a key element of corporate social responsibility in the workplace. In a recent survey conducted by WEALTH at work, most FTSE100 respondents (93%) thought that the responsibility for the long term financial well-being of employees is shared, between employers and employees.
However, nearly three quarters of companies (72%) believe that corporate reputations are
potentially at risk if employees face poverty in retirement. For example, if employees rely solely
on the provision made by their employer, they could face an uncertain financial future. Indeed, if
employees retire with inadequate retirement savings, they may well claim they have not been
adequately informed or supported by their employer. Such an outcome could have an impact upon key
elements of a company’s corporate social responsibility performance with implications for both the
workplace and the community.
Jonathan Watts-Lay, Director of
WEALTH at work comments, “It is becoming clear that corporate reputations could be
at risk if employees blame their employers for the lack of information, education and guidance
about their retirement savings”.
Over two thirds of companies (68%) provide
financial education at retirement with an increasing trend for it to be scheduled
well in advance of retirement – in some cases, five years or more prior to the anticipated
retirement date. This was confirmed by over half (57%) of FTSE 100 companies who responded to the
survey.
However, only 38% provide general
financial education, yet over three quarters of companies (76%) think that the
provision of
financial education is set to increase.
Jonathan Watts - Lay also comments “Any
financial education should include the many savings opportunities available to
employees in the workplace. As a consequence, greater value is derived from their employment whilst
ensuring that the company remains competitive in the job market”.
Please see a copy of the
'Survery
Results' attached.
