87% of employers say financial worries have a negative effect on an employee’s performance
According to a recent survey[1], 72% of employees want their employers to offer a workplace savings scheme in addition to a pension. And this is not falling on deaf ears. With financial wellbeing rising up the corporate agenda, particularly during the coronavirus crisis, employers are realising that they need to help their employees build up a level of financial resilience to protect themselves in the event of unexpected circumstances.
In light of the recent pandemic, 92% of employers would now consider setting up a workplace savings scheme in addition to a pension, where employees can contribute directly from their pay. Helping employees save and invest so they are better prepared to deal with unforeseen situations, such as coronavirus.
The research, which was conducted by Cushon, the workplace savings specialists, also looked at other types of financial wellbeing support employers would consider offering versus what employees want to see.
When it comes to education around saving and investing, the research found that 42% of employers recognised that their employees need more information about the different savings and investment options available. 26% of employers recognise that they need to provide employees with more information on how they can invest and how investing works. And 34% of employers would consider hosting webinars to help show employees how to better manage their finances and savings.
Steve Watson, head of proposition, Cushon, said: “Money worries often come from a change in circumstances and it’s important to have a financial buffer to fall back on should the unexpected happen. The impact of coronavirus on jobs and businesses has already been significant and it’s shown us that having a level of financial resilience is absolutely critical.
“It’s no surprise that so many employees are looking to their employers for support in times like these. Our research also found that 87% of employers say worries about finances have a negative effect on an employee’s performance at work, so it makes sense that healthy savings habits should be fostered through the workplace.
“Having a diverse workforce means that everyone’s financial priorities are different – they could be saving for their first home, managing debt or putting money away for retirement. Offering a workplace savings scheme, where employees can contribute directly from payroll, helps make the scheme accessible to everyone, no matter their age, earnings and circumstance.”
About Cushon
Cushon recently rebranded from Smarterly, as the fintech embarks on a new chapter in the company’s evolution to bring innovation to workplace savings and pensions.
Cushon is a workplace savings provider. A number of FTSE 100 companies now use Cushon to enable their employees to save directly out of their pay for first homes, holidays, children’s education, retirement, and more.
Employers use Cushon’s workplace savings platform to enhance the financial wellbeing of their workforce, by providing them with a simple and convenient way to save as little as £10 per month, direct from pay.
Through the workplace, Cushon aims to help the UK get more comfortable with saving and investing, and ultimately get a more comfortable life.
[1] Cushon‘s Financial Resilience research conducted amongst 2,000 individuals and 1,000 HR Managers - May 2020
