PAYING FOR FINANCIAL ADVICE – ARE YOU AN EMPLOYER?
Many employers are being forced to consider the introduction of pension arrangements to comply with the auto-enrolment legislation. Some employers will be reluctant to pay for any additional advice for their employees and will opt for the NEST scheme. That is fine. I appreciate that in a time of recession employers are finding it hard enough to find the extra contributions for the compulsory employer contributions without paying for financial advice in addition.
However, some employers do have a larger budget for employee benefits. These employers provide very valuable death in service and income protection schemes as well as retirement counseling. The service which is not often offered is financial education and individual financial advice to employees.
A report issued by the Chartered Institute of Personnel and Development in 2011 found that 73% of employees in the UK were offered no form of financial support or advice to help them better manage their finances. As we know there is still a high level of debt in this country and many lower paid employees will now have no way of accessing financial advice because of the cost. So there is a crying need for financial advice in the workplace.
At Nicholls Stevens we have experience of running surgeries and workshops on financial matters for employees and we are willing to work with you to set up a suitable package to meet the needs of your employees. Frequently employees have fallen into debt or other financial difficulties through ignorance and in some instances this can be easily resolved and as a result the employer has a more effective employee rather than the previous anxious and stressed member of staff.
November 2013