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.