Helping workers with financial wellness and security is an increasing imperative for employers who take an almost paternalistic attitude toward their employees, and a new PNC survey finds many executives say helping employees save for retirement is a component of social responsibility.
“Yet participation in financial education is low.”
Nearly all of these executives say that their organization is committed to helping employees save for retirement (99%), and most back it up by making contributions to their employee retirement plan (86%).
While high across the board, for-profit companies are slightly more likely to make contributions to their employee retirement plans (93%) than are nonprofit organizations (79%).
Just over half of nonprofits (52%) and six in 10 for-profit companies (62%) offer financial education to their employees. About half provide some financial education themselves (50%), but nearly as many rely on their plan administrator (47%) or investment consultant (42%).
Yet participation in financial education is low.
“The majority offer online financial tools (77%) as well as one-on-one meetings with employees (58%),” the survey noted. “About half also offer webinars (49%). Despite the many formats offered, slightly over half of the respondents (55%) say that less than 50% of their employees take advantage of their financial education programs.”
Also, nonprofits are more likely to report low participation (62%) than for-profit companies (48%).
About the survey
The online survey was conducted in December 2021 with a national sample of C-suite and financial executives in organizations with annual revenues of $25 million or more.
Respondents come from the general C-suite (e.g., CEO, President, Executive Director, COO) as well as high-level financial titles/roles (e.g., CFO, CIO, VP/Director of Finance). Most of these organizations (95%) have annual revenues of $50 million or more.
A total of 240 interviews were conducted, divided evenly between for-profit and nonprofit organizations. Respondents represent a broad range of industries, including healthcare, higher education, insurance, financial services, technology, construction, human services, etc.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of 401(k) Specialist and Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots. Experienced financial services content executive specializing in creative new media delivery. He joined the American Retirement Association in 2023 as Chief Content Officer, overseeing communications for the organization, as well as its sister organizations.