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Home > News > January 2007 > 02 January 2007

Report calls on employers to offer financial education in the workplace

Employers are being urged to take note of the negative effects post-Christmas 'financial hangovers' – and longer term financial difficulties – have on their people.

A new report, from the Chartered Institute of Personnel and Development (CIPD), calls on employers to offer financial education in the workplace, to combat the danger of stress and anxiety related underperformance associated with employees in debt.

The report, 'Workplace financial education: a win:win proposition', found that 23% of organisations are already providing financial education to their employees.

Charles Cotton, CIPD Reward Adviser, said: "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% 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."

According to the CIPD’s new guide, having a financially aware workforce can help reduce sickness absence and staff turnover, and help organisations attract staff and improve employee engagement.

"Workplace financial education can be a win–win proposition. By identifying whether there is a need for it, both from a business and employee perspective, and by tailoring it to meet these needs, employers can ensure they reap rewards that will repay their investment," adds Cotton.

The CIPD says 'Workplace financial education: a win:win proposition' will be available on the CIPD website in early January 2007.

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