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Educate your workforce to be financially savvy

Myron Jobson

Financial instability can distract workers, lead to an increase in absenteeism and ultimately cost a company money, but financial education can help to get to the root of financial woes, according to Ms Thresher.

She said that offering a bonus instead of sound advice would be an inadequate substitute, as a one-off increase in wage would not help an employee understand how to live within his means.

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In addition, directing workers to seek advice online would not be as effective as a personalised and interactive approach.

Commenting on how long workers might spend away from their desk during the education process, she said: “The reality is, employers can offer anything from an hour up to several days, but without financial education, employees may be absent due to the stress caused by worrying about finances.”

The best ways to gauge the success of the tutoring sessions is to ask for feedback and quiz employees on whether they have actively taken steps to improve their money management, Ms Thresher said

She added that the employer would see a decrease in the number of employee absences as a result of financial education.

Adviser view

Christopher Daems, director of London-based Principal Financial, said: “I can see genuine value in supplying financial education for employees of businesses. However, I believe that the place to start with financial education is in our schools and colleges. By teaching children some useful habits and techniques early on would provide a great foundation for the way they manage their money moving into their adult life.”