Around 87 per cent of employees haven’t used financial coaching, while 60 per cent say their workplace doesn’t offer it, according to a new report from TrinityBridge.
According to The Value of Financial Coaching report, only 12 per cent of UK workplaces currently offer financial coaching, while 43 per cent plan to add it.
A total of 28 per cent of employees and 49 per cent of those aged 18 to 24 say they would use it if available. But many remain unaware, with 20 per cent unsure if it is offered and 34 per cent unclear on what it involves. Around 38 per cent say they would not use coaching, and of those, 28 per cent believe it is not relevant, and 21 per cent are unsure how it helps.
Meanwhile, usage is highest among top earners making over £100,000, with 47 per cent using financial coaching, while uptake is significantly lower in other income brackets.
Generally, confidence in money management is high, with 60 per cent saying they feel capable of handling their finance, but some preferring financial advisers at 11 per cent or informal sources such as family, friends or online guidance at 9 per cent.
The report highlights clear benefits for those who use financial coaching, with a total of 37 per cent feeling more confident, 34 per cent better understanding money management and 27 per cent feeling more in control of financial decisions.
One in four feel more positive about the future, rising to 33 per cent among those aged 25 to 34 and improved mental health is reported by 19 per cent, increasing to 26 per cent for those aged 35 to 44.
Meanwhile, 41 per cent use coaching several times a year, rising to 57 per cent among those aged 25 to 34. Half of users say it boosts confidence, 43 per cent improve money skills, rising to 53 per cent of those aged 25 to 34 and 22 per cent report long-term changes in money habits.
TrinityBridge head of workplace wellbeing service Jeanette Makings says: “As employees across the UK continue to face the challenges of a rising cost of living, coupled with an expanding gap in those accessing financial advice, the potential of financial coaching is increasingly important as an essential component of workplace wellbeing strategies.
“The common thread running through this report is that financial coaching is highly valued by those who have used it, but for those who haven’t, it is frequently misunderstood. It evidences a strong need for more education as to what financial coaching offers and how it can help any financial situation. The positive impact of financial coaching for those who use it is both tangible and significant. For employers too, it offers a highly effective means of boosting financial wellbeing, increasing staff engagement, and empowering them to take control of their personal finances, with corresponding benefits for overall wellbeing, and productivity.”