Financial awareness can improve UK productivity

I am writing in response to the news story questioning the importance and role of employers in providing financial education in the workplace (Personnel Today, 4 September 2007).

Equipping employees with the skills to do their job makes business sense, but so too, according to CIPD research, is making sure they have a good financial understanding, because financial concerns can cause stress and depression, resulting in poor performance and increased sickness absence.

Providing staff with advice and education about financial matters will help them make more informed decisions about how to save for the future, and deal with concerns when they arise.

Better financial awareness can also help employees value and appreciate the employer’s benefit spend, and have a positive impact on levels of employee retention and engagement levels.

Charles Cotton, CIPD reward adviser

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