Why it’s vital to tailor financial education to attract and retain new starters

July 29, 2019
Information published was correct at the time of writing

The last few weeks have seen students collecting exam results and deciding on the next step of their future – be it further study or entering the world of work. As September begins many will be entering full-time work for the first time.

For all, finances will be top of mind. According to the Institute of Fiscal Studies student debt is on the rise and can be in excess of £50,000 for the poorest of students. For such newbies, financial education can be a huge help to both their financial and mental wellbeing at a time when they will already be stressed.

Craving security

New starters will be nervous enough about their new jobs, but add in the prospect of managing their pay packet while saving for their own property and future retirement with a five-digit debt hanging over their head, and it’s no surprise that the prospect of financial management can be overwhelming.

But these are workers who crave financial security. In a Way to Work survey (2018), Gen Z students about to finish university were found to have financial security as a top priority.

For many still getting used to life after student digs – perhaps living with parents or sharing a house until they can afford somewhere of their own – accommodation will be one of their biggest financial worries.

Supporting new recruits

It’s useful to consider this issue within your financial education package. Such as by providing new employees with the assurance and advice that they need to find their perfect place to live.

At Charles Cameron we can help employees with every step of getting on the housing ladder – even when it can seem a far-off reality.

New employees may be still struggling to find the initial funds for the deposit for a rental property, but there are solutions available – such as interest-free rental deposit loan schemes, where employers can help employees with the initial rental deposit needed by providing them with a loan that is then recovered through their monthly pay.

We can help advise renters on various options that will better help them with managing their money in the future and achieving the home they dream of. This includes credit score assistance through the Rental Exchange Scheme, a new service from Experian that helps people to use rent payments to boost their credit score and help with money borrowing in the future.

Getting on the housing ladder

The core of our business, however, aims to help staff get on the housing ladder itself, by finding the best mortgage option for their particular circumstances. This is done through one-on-one mortgage advice sessions with employees held in the workplace.

In these meetings – which importantly are free to both employee and employer – we can explain the mortgage market climate, application process and the costs involved. These include everything from the deposit needed to stamp duty and legal fees.

We can advise on the deals that best suit new professionals. This will not only help you stand out from your competitors when it comes to recruitment but may also aid retention too. For example, we have recently been offered access to mortgage products exclusively available for recently qualified professionals that include five times income multiples and 95 percent loan to value lending. This could be of particular interest to law firms, accountants and health professionals.

Your new recruits will be hungry for information as they step on the career ladder with you. Help them understand how they could one day get on the housing ladder too through targeted financial education and you really could see the benefits of less stressed, more focussed employees.

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