Eighty-three per cent of employers admit that financial advice is something their employees would benefit from, according to figures from Chase de Vere.
However, the research also found that just 33 per cent of employers said they had an appetite to pay for this advice, with only 27 per cent of firms including the cost of financial advice in their current budget.
The firm explained that, contrary to popular belief, financial programmes do not have to be expensive, with many advisory firms able to tailor a programme to suit the exact requirements and budget of an employer.
Commenting, Chase de Vere corporate advice manager Sean McSweeney said: “Too many employers look only at the headline costs of providing financial advice in the workplace without paying sufficient regard to the benefits it can provide to their employees, their business and also to their bottom line. This could be a false economy.”
Furthermore, McSweeney argued that employers who do not take advantage of being able to provide financial advice to their employers face an “aging population that cannot afford to retire”, which could result in “lower productivity and succession planning issues”.
“Providing financial advice can actually save money for employers. If there are low levels of engagement this invariably results in fewer employees paying more than minimum amounts into their workplace pension. But the presence of a decent financial advice programme will almost certainly boost these contribution levels and, if the company uses salary sacrifice, each extra pound invested will mean a national insurance saving for the employer,” he added.
“These national insurance savings can be considerable and could cover the cost of the financial advice programme or even leave the employer with a surplus. So employers could actually make a profit from offering financial advice in the workplace, especially if their current level of employee engagement and employee pension contributions are low.”