Case study: FirstGroup drives in-house savings plan for staff
Bus and rail operator FirstGroup hopes its financial education scheme will help employees ride out the credit crunch.
The firm encourages its workers to save and borrow through company-sponsored credit unions, which are currently used by a third of its workforce. It also provides financial education seminars and CD-Roms. John Chilman, pensions director, says: "The measures we have in place to support our colleagues in developing their personal financial management skills should stand them in good stead to cope with the emerging situation, including tighter credit conditions."†
He adds that, while the firm offers pay advances in exceptional circumstances, demand for these has all but disappeared. "By taking advantage of our credit union, colleagues build up savings to help them withstand occasional financial crises. They are also able to borrow at reasonable rates and avoid falling prey to doorstep lenders."†
As part of its financial education scheme, the company also sends every employee a copy of the Financial Services Authority's Money made clear booklet.
