Financial Education Presentation

SHRM Poll, November 2, 2009 | ©SHRM 2009

November 2, 2009

SHRM Poll: Assistance Organizations Offer to Help Employees Manage Their Financial Resources


Definition Financial education is defined as any workplace

initiative, program or resource designed to provide employees with information on how to manage their financial resources effectively for a lifetime of financial well-being.

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Does your organization currently provide any kind of financial education to your employees?

Provide fi-

nancial ed-ucation64%

Do not provide financial education36%

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Differences by organization staff size:• Respondents from large-staff-sized

organizations (75%) were more likely than those from small-staff-sized organizations (51%) to report their organization provided financial education.

Differences by organization operations location:• Organizations with multinational

operations (72%) were more likely to provide financial education than organizations based only in the United States (61%).

Difference by organizational sector:• Publicly owned for-profit

organizations (76%) were more likely than privately owned for-profit organizations (58%) to provide financial education.

n = 401

Note: Small-staff-sized organizations = 1-99 employees, medium-staff-sized = 100-499 employees, large-staff-sized = 500 or more employees.

Only significant differences are presented.


What are companies doing to help employees manage their financial resources effectively

for a lifetime of financial well-being?

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What financial education topics are available to your employees?

Other

Education on financial topics beyond employer-provided benefits and retirement*

Education limited to financial decisions related to retirement

Education limited to use of employer-provided benefits (e.g., retirement, medical insurance, FSA, etc.)

Access to an Employee Assistance Program (EAP) that includes financial counseling/resources

1%

33%

43%

65%

73%

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n = 255* For example ,budgeting, paying for education, debt reduction or credit card use, homeownership, taxes, etc.Note: Asked only of respondents who said their organizations offered financial education. Percentages do not total 100% as respondents were allowed multiple choices.


Have you conducted a needs assessment (e.g., surveys, focus groups, etc.) to determine what topics or delivery methods of financial education would be most beneficial to your employees?

No,88%

Yes12%

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n = 253Note: Asked only of respondents who said their organizations offered financial education


How do you provide financial education to your employees?

Other

Voluntary seminars outside of work hours

Mandatory seminars/training

In-house newsletter

Voluntary seminars during work hours lead by trained, in-house staff

Information on your organization’s intranet

New hire employee orientation

Voluntary seminars during work hours using outside speakers

0% 10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2%

15%

17%

30%

31%

42%

47%

57%

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n = 256Note: Asked only of respondents who said their organizations offered financial education. Percentages do not total 100% as respondents were allowed multiple choices.


Within the last 12 months, has your organization seen an increased demand for financial education from employees?

Yes, an in-creased demand35%

No increase in demand65%

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Differences by organization staff size:• Respondents from large-staff-sized

organizations (46%) were more likely than those from small-staff-sized organizations (20%) to report an increased demand for financial education.

n = 195Note: Asked only of respondents who said their organizations offered financial education. Excludes respondents who answered “not sure.”


What is the primary personal financial concern of your employees?

Other

Concern about paying for children’s education

Living on credit (e.g., increasing level of personal debt)

Lack of basic financial knowledge (e.g., budgeting, using credit wisely, etc.)

Making ends meet - living paycheck to paycheck

Inability to save for future (including retirement)

0% 10% 20% 30% 40% 50%

1%

3%

6%

21%

33%

36%

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n= 181Note: Asked only of respondents who said their organizations offered financial education. Excludes respondents who answered “not sure.”


As you plan your budget for next year (2010), have you requested or are you requesting funds for financial education?

No,81%

Yes19%

10

n = 253Note: Asked only of respondents who said their organizations offered financial education.


Have your financial education initiatives faced any obstacles?

No,67%

Yes33%

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n = 256Note: Asked only of respondents who said their organizations offered financial education.


What is the biggest obstacle your financial education initiatives face today?

Other

Lack of need in your workplace

Not sure how to create or find financial education resources

Concern about perceived violation of fiduciary duty if outside presenters are not objective

Lack of support from organization’s leaders

Cost of providing financial education

Lack of interest among employees

0% 10% 20% 30% 40% 50%

2%

6%

8%

11%

11%

25%

37%

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n = 171Note: Asked only of respondents who said their organizations’ financial education initiatives faced obstacles.


Results by Companies That Did Not Offer Financial Education to Employees

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Does your organization have plans to provide financial education to your employees within the next 12 months?

No,92%

Yes8%

14

n = 145Note: Asked only of respondents who said their organizations did not offer financial education.


What is the biggest obstacle preventing your organization from providing financial education in the workplace?

Other

Not sure how to create or find financial education resources

Concern about perceived violation of fiduciary duty if outside presenters are not objective

Lack of support from organization’s leaders

Lack of need in your workplace

Lack of interest among employees

Cost of providing financial education

0% 10% 20% 30% 40% 50%

2%

7%

14%

14%

17%

19%

27%

15

n = 132Note: Asked only of respondents who said their organizations did not offer financial education and had no plans to provide financial education within the next 12 months.


Demographics: Organizational Industry

Industry

Manufacturing 18%

Services—professional, scientific, technical, legal, engineering 10%

Financial services (e.g., banking) 9%

Government/public administration—federal, state/local, tribal 9%

Health care, social assistance (e.g., nursing homes, EAP providers) 9%

Other services (e.g., nonprofit, church/religious organizations) 8%

Educational services/education 7%

Retail/wholesale trade 5%

Construction, mining, oil and gas 3%

Consulting 3%

High-tech 3%

Insurance 3%

Transportation, warehousing (e.g., distribution) 3%

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n = 398Note: Percentages do not total 100% due to rounding.


Demographics: Organizational Industry (Continued)

Industry

Publishing, broadcasting, other media 2%

Telecommunications 2%

Utilities 2%

Arts, entertainment, recreation 1%

Association—professional/trade 1%

Biotech 1%

Pharmaceutical 1%

Real estate, rental, leasing 1%

Services—accommodation, food and drinking places 1%

Other 1%

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Demographics: Organizational Sector

Government sector

Nonprofit organization

Publicly owned for-profit

Privately owned for-profit

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

11%

20%

20%

50%

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Demographics: Organization Staff Size

Small (1-99 employees) Medium (100-499 employees) Large (500 or more employees)0%

10%

20%

30%

40%

50%

25%

43%

32%

19

n = 368


Demographics: Organization Region

Northeast

West

South

Midwest

0% 10% 20% 30% 40% 50%

17%

24%

26%

34%

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Demographics: Organization Operations Location

U.S. based operations Multinational operations0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

74%

26%

21

n = 397


SHRM Poll: Assistance Organizations Offer to Help Employees Manage Their Financial Resources.

• Response rate = 17%• Sample comprised of 401 randomly selected HR professionals

from SHRM’s membership• Margin of error is +/- 4 • Survey fielded October 15 - October 22, 2009

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Methodology

Documents

Financial Education Presentation