How to manage financial education

Cover%20How%20To%20300807Preparing staff for financial schooling
Productivity gains in adding education remit
A constant onslaught may influence success
Form versus function
Share mechanics of perks Share mechanics of perks
Bill pensions as need to save so interest is boosted
Switch on to retirement as early as you can
Appreciating benefits
Letting staff career ahead

Some employers may query why they should provide financial education for staff. The benefits are clear.

For starters, the more education you give staff about the perks on offer, say on pensions or shares, the more likely they are to understand their true worth, including any potential tax benefit. This is important. If staff value the benefits on offer then they are likely to hold their employer in higher esteem which, in turn, should boost productivity and staff retention.

Much is also made of our increasingly litigious society. Some employers in the US have reportedly faced court action from employees with grievances over benefits provision. But by offering financial education, employers will guard themselves against this risk as employees will be hard-pressed to argue that they were not given the full picture.

But the most compelling reason though is the research conducted in the US by Dr E Thomas Garman, president of the Personal Finance Employee Education Foundation, which demonstrates the positive impact of financial education on employee productivity levels.

Amanda Wilkinson,
Editor, Employee Benefits magazine