Why financial education for employees can be good for business

Wednesday July 22, 2020

The UK government has revealed plans to further ease lockdown restrictions in England. It is encouraging much of society to return to some sort of normality, in a COVID-secure way.

Employers have been given the green light to bring remote workers back to the office from August, so long as it is safe to do so. Dining out is now encouraged through “eat out to help out” vouchers in a bid to boost the economy.

Fears over physical health continue to be addressed through mandatory COVID-secure risk assessments, social distancing, and local lockdowns. However, there is another barrier on the road to recovery which not everyone feels comfortable to discuss. The fallout from coronavirus has left a lot of people worrying about money.

Financial well-being

Although money woes can be common, especially at a time like this, many people still feel embarrassed to open up and admit if they are struggling financially. Negative social stigma can prevent a person from seeking vital advice and support, which can make the situation worse.

Bottling these worries up can lead to further problems, such as difficulty sleeping, lack of focus, prolonged stress, or depression.

Starting a conversation and seeking support can be the first step in the right direction. Whether it’s taking advantage of the support available to your business through emergency relief funds or making your workforce aware of resources that provide free financial advice like the Money Advice Service, what may start as a difficult conversation can end up bringing positive progress.

Beyond this, encouraging financial education and awareness to employees can help to reduce the risk of stressful situations arising in the future.

Support for your business

Chancellor Rishi Sunak recently announced a new plan for jobs with a Job Retention Bonus for employers who retain furloughed workers. Funding was also announced to create fully subsidised jobs for young people and boost apprenticeship schemes. Eligibility rules apply so be sure to read the official terms carefully.

Employers faced with making redundancies, but who are struggling to pay statutory redundancy payments, can apply for financial assistance from the government’s Redundancy Payments Service. The redundancy process must be fair, legal, and handled with care. Professional assistance is advised.

Financial education

Financial education was not added to the UK curriculum until 2014. This means that most people old enough to work have had no formal training on how to manage their personal finances. Learning the hard way may result in it taking years to recover.

While it’s not necessarily an employer’s responsibility to educate employees on money management, doing so can have mutual benefits.

Budgeting skills can be applied to many job roles, and if employees are less stressed about their finances, they can be more focused and reliable at work.

Helping or training employees in this way can build trust and provide support at a time when it is needed the most. If you’re not sure where to start with financial education in your business, consider contacting your pensions provider for up-to-date literature.

Financial security is crucial for well-being. Fraud awareness training can not only help to protect a business, but also help employees to be more wary of the risk when managing their own money.

If you would like to know more about our Fraud Awareness eLearning course, or want to discuss how you can approach financial well-being with your workforce, contact us today.

Preventing People Problems

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