As the post-festive spending hangovers hit home, employers are being urged to give staff lessons in financial management.
In a new report the Chartered Institute of Personnel and Development (CIPD) argues that employees who are worried about their finances are less likely to concentrate at work – so providing lessons in financial management pays everyone.
The report, Workplace financial education: a win:win proposition reveals that 23 per cent of organisations already provide financial education for their employees.
It also points out that a financially ill-educated workforce may not fully appreciate the value of innovative pay and benefits packages, wasting the resources committed to providing them.
Charles Cotton, CIPD reward adviser, says: “Christmas and the New Year can leave families facing short-term financial headaches.
“But with the average debt for each UK family standing at 150 per cent of its combined income, employers need to sit up and take note of the impact financial problems have on their employees.
“Employers may not think providing basic financial education for their people is their responsibility. But the impact of not providing it can mean a workforce pre-occupied or overwhelmed by their own financial problems, and unable to appreciate the value of the pay, benefits and pensions package the employer uses to attract and retain its best people.
“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.
“It can boost motivation and staff retention by helping employers to get across the value of the financial benefits they offer to their employees. And, by boosting general financial awareness, it can create a workforce that better appreciates the business pressures faced by their employers.”
The CIPD’s new guide shows that having a financially aware workforce can help reduce sickness absence and staff turnover, and help organisations attract staff and improve employee engagement.