SHRM Financial Education

January 24, 2012
SHRM Survey Findings:
Financial Education Initiatives in the Workplace

Financial Education Initiatives in the Workplace ©SHRM 2012
Definitions
2
 Financial education: 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.
 Employee Generations
 Veterans: born before 1946; 67 years of age or older
 Baby Boomers: born between 1946 and 1964; 48 to 66 years of age
 Generation X: born between 1965 and 1980; 32 to 47 years of age
 Millenials: born after 1980; 31 years of age or younger

Key Findings
3
 What are the most common personal financial challenges? Almost one-half of HR professionals (49%)
indicated that the personal financial challenge that affected employees at their organizations the most was
an overall lack of monetary funds to cover employees’ personal expenses. Furthermore, more than one-
third of HR professionals (35%) indicated that medical expenses were a significant financial challenge for
employees at their organizations, and approximately one-quarter of HR professionals (26%) pointed to
saving for retirement as a major challenge for employees. Not surprisingly, organizations whose employees
were primarily represented by a particular generation (e.g., a greater proportion of Millenials or Baby
Boomers) reported different personal financial challenges.
 Are employees currently more likely to dip into their retirement savings plan? The majority of HR
professionals (72%) said that they strongly agree or agree that their employees were more likely to dip into
employer-sponsored retirement savings plans in the past 12 months compared with previous years.
 Do personal financial challenges affect overall employee performance? The majority of HR professionals
(83%) indicated that personal financial challenges had a large impact or some impact on overall employee
performance. Of these HR professionals, almost one-half indicated that an employee’s ability to focus on
work (47%) and overall employee stress (46%) were the aspects of employee performance that were most
negatively affected by personal financial challenges.
 Are organizations providing financial education to their employees? Currently, fewer organizations (52%)
are providing any kind of financial education to their employees than in 2009 (64%). Larger organizations
(2,500 to 24,999 employees) (72%) are more likely to offer financial education to their employees
compared with smaller organizations (1 to 99 employees) (36%).

Key Findings
4
 What aspects prevent organizations from providing financial education to their employees?
Approximately one-fourth of HR professionals indicated that the cost of providing financial education (25%)
and lack of interest among its employees (23%) were the biggest obstacles that prevented them from
offering financial education to their employees. Also, 15% of HR professionals indicated that there was a
lack of support from organizational leaders.
 What types of financial education do organizations provide to their employees? The majority of
organizations provide access to an employee assistance program (EAP) that includes financial
counseling/resources (79%). Many organizations also offered education limited to the use of employer-
provided benefits such as retirement, medical insurance and flexible spending account (FSA) information
(68%).
 How do organizations provide financial education to their employees? Most often, organizations provide
financial education through voluntary seminars during work hours using outside speakers (60%).
Organizations also communicate their financial education through new-hire employee orientations (44%)
and the intranet (40%).
 What are the biggest obstacles organizations face in providing financial education to their employees?
Interestingly, concerns that prevent organizations from creating financial education programs for their
employees are similar to obstacles reported by organizations that already provide financial education.
Among organizations that currently offer financial education, 33% indicated that the cost of providing
education was the biggest obstacle, while 25% said it was a lack of interest among employees . However,
fewer organizations (21%) encountered obstacles in offering financial education to their employees in 2011
compared with 2009 (33%).

In the past 12 months, which of the following personal financial challenges have
affected employees at your organization the most?
5
Other
Bankruptcy
Other debt
Home rental payments
Education expenses (e.g., tuition costs for self,
dependent children, other family members)
Home mortgage payments
Credit card debt
Saving for retirement
Medical expenses
Overall lack of monetary funds to cover their
personal expenses
4%
4%
8%
9%
12%
22%
22%
26%
35%
49%
Note: n = 459. Respondents who answered “Not sure” were excluded from this analysis. Percentages may not equal 100% due to multiple response
options.

Other generations Veterans Differences based on generations
12% 40% Veterans > other generations
6
Comparisons by employee generation
HR professionals from organizations where Veterans (those born before 1946) represent the largest percentage of the workforce are
more likely to indicate that educational expenses are a personal financial challenge for employees, compared with HR professionals
from organizations where other generations make up the largest percentage of the workforce.
Other generations Baby Boomers Differences based on generations
21% 35% Baby Boomers > other generations
HR professionals from organizations where Baby Boomers (born 1946-1964) represent the largest percentage of employees are
more likely to indicate that saving for retirement is a personal financial challenge for employees, compared with HR professionals
from organizations where other generations make up the largest percentage of the workforce.
HR professionals from organizations where Generation X employees (born 1965-1980) represent the largest percentage of the
workforce are more likely to indicate that credit card debt is a personal financial challenge for employees, compared with HR
professionals from organizations where other generations make up the largest percentage of the workforce.
Other generations Generation X Differences based on generations
18% 26% Generation X > other generations

Other generations Millenials Differences based on generations
7% 19% Millenials > other generations
7
Comparisons by generation (continued)
HR professionals from organizations where Millenials (born after 1980) represent the largest percentage of the workforce are more
likely to indicate that home rental payments are a personal financial challenge for employees, compared with HR professionals from
organizations where other generations make up the largest percentage of the workforce.
HR professionals from organizations where majority of employees are female are more likely to indicate that educational expenses
are a personal financial challenge for employees, compared with HR professionals from organizations where majority of employees
are male.
Male employees Female employees Differences based on gender
11% 19% Female employees > male employees
Comparisons by gender

Do you agree that in the past 12 months, employees have been more likely to dip
into their employer-sponsored retirement savings plans compared with previous
years?
8
Strongly
disagree
Disagree
Agree
Strongly agree
3%
24%
55%
17%
Note: n = 376. Respondents who answered “Not sure” were excluded from this analysis.
Percentages may not equal 100% due to rounding.

How much of an impact do employees’ personal financial challenges have on their
overall employee work performance?
9
No impact at
all
A slight
impact
Some impact
A large impact
2%
16%
61%
22%
Note: n = 424. Percentages may not equal 100% due to rounding.

What aspects of overall employee work performance are MOST negatively affected
when employees face personal financial challenges?
10
Other
Working relationships with
other employees
Overall employee health
Overall employee morale
Employee
absenteeism/tardiness
Overall employee
productivity
Overall employee stress
Ability of employees to focus
on work
1%
7%
12%
20%
24%
26%
46%
47%
Note: n = 341. Only respondents whose organizations indicated that personal financial challenges have “a large impact” or “some impact” on overall employee
work performance were asked this question. Respondents who answered “Not sure” were excluded from this analysis. Percentages may not equal 100% due to
multiple response options.

Compared with five years ago, are employees at your organization currently faced
with more or fewer personal financial challenges?
11
80%
18%
2%
Employees are currently
faced with more personal
financial challenges
compared with five years ago
Employees are currently faced
with about the same amount of
personal financial challenges
Note: n = 387. Respondents who answered “Not sure” were excluded from this analysis.
Employees are currently
faced with fewer personal
financial challenges

Does your organization currently provide any kind of financial education to your
employees?
12
No
Yes
36%
64%
48%
52%
2011 (n = 435)
2009 (n = 401)

Does your organization currently provide any kind of financial education to your
employees?
Smaller organizations Larger organizations Differences based on organization staff size
1 to 99 employees (36%) 2,500 to 24,999 employees (72%) Larger organizations > smaller organizations
13
Comparisons by organization staff size
Larger organizations (2,500 to 24,999 employees) are more likely to provide financial education to their employees than smaller
organizations (1 to 99 employees).

Do organizations plan to provide financial education to their employees within the
next 12 months?
14
No
Yes
92%
8%
83%
17%
2011 (n = 214)
2009 (n = 145)
Note: Only respondents whose organizations did not offer financial education to their employees were asked this question.

15
What type of financial education do organizations offer to their employees?
2011
(n = 219)
2009
(n = 255)
Access to an employee assistance program (EAP) that
includes financial counseling/resources
79% 73%
Education limited to use of employer-provided benefits
(retirement, medical insurance, FSA)
68% 65%
Education limited to financial decisions related to retirement 47% 43%
Education on financial topics beyond employer-provided
benefits and retirement, such as budgeting, paying for
education, debt reduction or credit card use, homeownership
and taxes
39% 33%
Other 3% 1%
Note: Only respondents whose organizations offered financial education were asked this question. Percentages may not equal 100% due to multiple
response options.

What type of financial education do organizations offer to their employees?
Publicly owned for-profit
organizations
Nonprofit organizations Differences based on organization sectors
51% 80% Nonprofit > publicly owned for-profit
16
Comparisons by organization sector
Nonprofit organizations are more likely to offer financial education topics that are limited to employer-provided benefits, compared
with publicly owned for-profit organizations.

17
How do organizations provide financial education to their employees?
2011
(n = 219)
2009
(n = 256)
Voluntary seminars during work hours using outside speakers
(such as a “lunch and learn”)
60% 57%
New-hire employee orientation 44% 47%
Information on organization’s intranet 40% 42%
In-house newsletter 25% 30%
Voluntary seminars outside of work hours 22% 15%
Voluntary seminars during work hours lead by trained, in-
house staff
17% 31%
Mandatory seminars/training 11% 17%
Other 9% 2%
Note: Only respondents whose organizations offered financial education were asked this question. Percentages may not equal 100% due to multiple
response options.

How do organizations provide financial education to their employees?
Publicly owned for-profit
organizations
Nonprofit organizations Differences based on organization sectors
40% 74% Nonprofit > publicly owned for-profit
18
Comparisons by organization sector
Nonprofit organizations are more likely than publicly owned for-profit organizations to provide financial education through voluntary
seminars during work hours using outside speakers.
Comparisons by organization size
Larger organizations are more likely than smaller organizations to provide financial education through the organization’s intranet.
Smaller organizations Larger organizations Differences based on organization size
1 to 99 employees (18%)
500 to 2,499 employees (28%)
2,500 to 24,999 employees (63%) Larger organizations > smaller organizations

In the past 12 months, has your organization seen an increased demand for financial
education from employees?
19
No
Yes
65%
35%
63%
37% 2011 (n = 154)
2009 (n = 195)
Note: Only respondents whose organizations offered financial education were asked this question.

As you plan your budget for next year, are you requesting funds for financial
education?
20
No
Yes
81%
19%
79%
21% 2011 (n = 217)
2009 (n = 253)

Has your organization conducted a needs assessment (including surveys, focus
groups, etc.) to determine what topics or delivery methods of financial education
would be most beneficial to your employees?
21
No
Yes
88%
12%
90%
10% 2011 (n = 214)
2009 (n = 253)

Has your organization’s financial education initiatives faced any obstacles?
22
No
Yes
67%
33%
79%
21%
2011 (n = 215)
2009 (n = 256)

23
What is the biggest obstacle that your financial education initiatives face?
Organizations that
currently offer
financial education
Organizations that do
not currently offer
financial education
2011
(n = 48)
2009
(n = 171)
2011
(n = 150)
2009
(n = 132)
Cost of providing financial education 33% 25% 25% 27%
Lack of interest among employees 25% 37% 23% 19%
Lack of support from organization’s leaders 8% 11% 15% 14%
Concern about perceived violation of fiduciary duty if
providers of financial education (i.e., outside providers) are
not objective*
6% 11% 9% 14%
Lack of need in your workplace 6% 6% 8% 17%
Not sure how to create or find financial education resources 4% 8% 14% 7%
Other 17% 2% 6% 2%
Note: An asterisk (*) indicates that the survey choice was changed from “outside presenters” in 2009 to “providers of financial education (i.e., outside
providers)” in 2011.

Demographics: Employee Generations
24
Employees are more or
less equally distributed
across all generations
Millenials
Generation X
Baby Boomers
Veterans
10%
23%
58%
50%
2%
Note: n = 426. Percentages may not equal 100% due to multiple response options. Respondents were asked to select up to two generations that
primarily represented their workforce.

Demographics: Employee Gender
25
Mostly male
employees
More or less equally
distributed between
male and female
employees
Mostly female
employees
28%
39%
34%
Note: n = 425. Percentages may not equal 100% due to rounding. Percentages may not equal 100% due to multiple response options.

Demographics: Organization Industry
26
Percentage
Manufacturing 19%
Health care and social assistance 15%
Other services except public administration 13%
Professional, scientific and technical services 11%
Finance and insurance 10%
Educational services 9%
Retail trade 5%
Transportation and warehousing 5%
Accommodation and food services 4%
Construction 4%
Public administration 3%
Administrative and support and waste management and remediation services 3%
n = 416. Percentages may not equal 100% due to multiple response options.

Demographics: Organization Industry (continued)
27
n = 416. An asterisk (*) indicates < 1%. Percentages may not equal 100% due to multiple response options.
Percentage
Arts, entertainment and recreation 3%
Religious, grant-making, civic, professional and similar organizations 3%
Utilities 3%
Information, publishing industries 2%
Wholesale trade 2%
Real estate and rental and leasing 1%
Repair and maintenance 1%
Management of companies and enterprises 1%
Mining *
Personal and laundry services *
Agriculture, forestry, fishing and hunting 0%
Private households 0%

Demographics: Organization Sector
Other
Government sector
Nonprofit organization
Publicly owned for-profit organization
Privately owned for-profit organization
4%
7%
23%
18%
49%
28
Note: n = 415. Percentages may not equal 100% due to rounding.

Demographics: Organization Staff Size
1 to 99 employees 100 to 499
employees
500 to 2499
employees
2500 to 24999
employees
25000 or more
employees
27%
35%
18%
15%
5%
29
n = 408

Demographics: Other
30
Does your organization have U.S.-based
operations (business units) only or does it
operate multinationally?
U.S.-based operations only 77%
Multinational operations 23%
n = 423
Is your organization a single-unit company or a multi-
unit company?
Single-unit company: A company in which the
location and the company are one and the
same
37%
Multi-unit company: A company that has
more than one location
63%
n = 423
Are HR policies and practices determined by the multi-unit
corporate headquarters, by each work location or both?
Multi-unit headquarters determines HR policies
and practices
67%
Each work location determines HR policies and
practices
2%
A combination of both the work location and
the multi-unit headquarters determine HR
policies and practices
31%
n = 278
HR department/function for which you
responded throughout this survey
Corporate (companywide) 67%
Business unit/division 16%
Facility/location 16%
n = 279

 Response rate = 15%
 Sample composed of 458 randomly selected HR professionals from SHRM’s membership
 Margin of error +/- 5%
 Survey fielded December 21, 2011 – January 9, 2012
31
Methodology
For more poll findings, visit www.shrm.org/surveys
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SHRM Survey Findings: Financial Education Initiatives in the Workplace

SHRM Financial Education

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