Uncategorized August 3, 2012

More financial education needed for employees

Providing financial education to employees could be a firm's ace in the hole after a survey suggests more than half of employees have money worries.

Data from the Chartered Institute of Personnel and Development's Employee Outlook survey (CIPD), cited by peoplemanagement.co.uk, suggests that 73 per cent of employees claim their firm offers no support for workers to increase their understanding of financial issues.

The figures are worrying, especially considering 59 per cent of the report's respondents admitted they have experienced some degree of stress about their personal finances.

It could be a opportune time for a CEO to provide help and education for those with financial worries, especially as anxiety and stress can be detrimental to employee productivity in the short/long term.

Charles Cotton, CIPD reward advisor, commented on the survey on employeebenefits.co.uk: "Employers may think that the financial savvyness of their employees is not their responsibility. But the impact of not providing financial education can mean a workforce pre-occupied or overwhelmed by their own financial worries, and unable to appreciate the value of their organisation's pay, benefits and pension package.

"A little financial education can go a long way. It can improve performance by giving employees the means to alleviate stress and pressure they're under because of financial difficulties," he added.

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