01/03/2011
By Matt Ritchie
Standard Life has launched Insights into Financial Responsibility (IFR), which defines how financial behaviours are changing in the relationship between employers and employees.
Announcing the release of the study, Standard Life said the IFR has been developed in partnership with occupational psychologist Emily Hutchinson, and addresses the issues of financial planning, employee communication and financial responsibility.
Based on a survey of 250 employers and over 1,000 employees within the UK’s largest companies, the study found eight in ten employers feel responsible for their employees’ financial security with nearly a quarter (22%) feeling ‘primarily’ responsible.
According to the IFR, 65% of employers believed that employee communication has improved over the past five years. However, almost the same number of employees (64%) felt that either nothing had changed or the situation had deteriorated.
When asked about support with financial planning, 75% of employees stated they would value more help from their employer, while 64% of employers said they thought offering help through financial planning would make them more attractive to potential new employees.
Managing director, corporate solutions at Standard Life Gerry O’Neill said the IFR 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,” O’Neill said.
Occupational psychologist Emily Hutchinson said the IFR 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,” Hutchinson said.
The IFR was published yesterday to coincide with the launch of Lifelens by Standard Life, an employee pension and benefits portal. Standard Life said Lifelens has been developed based on extensive employee and employer insight, and 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.
The IFR can be downloaded here
