Employers struggle to convince staff on financial advice

While 68 per cent of employers recognise the need to help staff members deal with personal financial stress, just one-third of employees are interested in receiving financial advice from employer funded advisers, according to MetLife’s Employee Benefit Trends Study.

Released last week, the study surveyed 300 Australian company managers and over 500 full-time Australian employees.

In a statement, MetLife said the gap in employee interest in financial advice comes down to poor communication between employers and staff.

“While 68 per cent of employers believe they educate their employees about their benefits programs, just 31 per cent of employees feel they have sufficient information to choose the option that meets their needs,” the report said.

“This demonstrates the need for companies to clearly communicate the benefits of professional financial advice.”

There is “a need for employers to step in with professional support and education to help boost their staff’s financial literacy and relieve the stress that this currently creates”, MetLife said.

According to the report, 31 per cent of employees in Australia say they have taken unexpected time off work to deal with financial issues and 41 per cent say financial worries are a distraction from their work.

Just 31 per cent of employees said they felt completely in control of their finances and 33 per cent felt highly confident making financial decisions, MetLife found.

Those in senior management positions or working for multinational companies were more likely to report experiencing personal financial concerns, the report said.