A recent survey conducted by CloudPay, a global employee pay company, has shed light on the strong desire among employees for financial education and guidance from their employers.
However, the study also highlights the concerning gap between this desire and the actual availability of such resources.
According to CloudPay’s data, a staggering 91 percent of employees believe that they and their colleagues would benefit from employer-led financial education, support, and advice.
This sentiment underscores the growing recognition of the financial challenges faced by workers in the current economic climate.
Unfortunately, the data also reveals that just 34 percent of employees currently have access to such resources, indicating a significant deficit in the provision of financial education by employers.
What about household expenses?
One notable finding from the study is the increasing reliance on Earned Wage Access (EWA) to meet household expenses. The data showed a rise in the number of individuals using EWA for bill payments between January and July 2023. This trend underscores the ongoing challenges posed by the cost-of-living crisis and inflationary pressures, making it imperative for employers to rethink their approaches to pay and payroll processes.
Commenting on these findings, Judith Lamb, Vice President of Global HR at CloudPay, stated, “It’s no secret that many people are facing significant difficulties managing their finances in the challenging conditions that we’re currently experiencing. However, it’s also clear that staff are looking for additional financial education from their employers to help them navigate this tough period.”
Lamb continued, “There’s very little resource for education around money management in the UK school system, and the onus is falling on employers to provide information that can help professionals to tackle conditions that they have never faced before. Providing this sort of education isn’t only just the right thing to do; it can also prevent staff attrition levels from rising as employees seek better-paying opportunities elsewhere.”
Prevailing economic restraints not allowing for higher salaries
With the prevailing economic constraints, few organisations can afford to offer significantly higher salaries. However, by offering financial education and guidance on how employees can better manage their available resources, employers can help salaries go further, benefiting both employees and the company.
Lamb emphasised, “The onus is on employers to lead this charge, as there’s currently a major gap in the market for this sort of expertise. Being able to access earned wages as and when they are needed can obviously provide a huge helping hand; however, there’s clearly a demand for greater degrees of financial education on top of this.”
As the economic landscape continues to evolve, the call for employers to step up and provide financial education becomes increasingly urgent. Employees are not only seeking financial stability but also looking to their employers for support in navigating these unprecedented financial challenges.
CloudPay’s data underscores the need for employers to modernise their approach to employee financial well-being, ensuring that financial education and resources are readily available to help employees thrive in these uncertain times.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.
