Plan Sponsors Fail to Provide Even Basic Financial Advice
03 August 2012 (PLANSPONSOREurope.com) – UK plan sponsors are “missing a trick” by failing to provide even basic financial advice to employees, according to the Chartered Institute of Personnel and Development (CIPD).
The CIPD’s comments follow research which reveals 73% of employees report that their organisation offers them no form of financial support or advice to help them better understand and manage their finances. The data also highlights that, despite the rising pressure on employee living standards, with 59% of employees reporting some financial struggles, employers are missing a trick by failing to offer even basic financial education.
To help employers provide more work-based financial education programmes for their employees, the CIPD has today launched a guide on workplace financial education. The guide calls on employers to offer financial education at work, to combat the danger of stress and anxiety-related underperformance associated with employee debt.
Introducing the guide, Charles Cotton, Reward Adviser at CIPD, said: “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 pensions 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. It can help boost motivation and staff retention by helping employers to get across the value of the financial benefits they offer to their employees. And, by heightening general financial awareness, it can create a workforce that better appreciates the business pressures faced by their employers.”