What is financial education in the workplace
The CIPP is championing financial education both in schools, colleges and universities, and in the workplace. This is in response to research conducted which shows that individuals want to increase their financial awareness and understanding, and that they would value this as a workplace benefit.
The CIPP works with a number of partner organisations who assist in delivering financial education, and volunteers who deliver basic training within schools, colleges and universities to fit with the requirements of the national curriculum.
Why the CIPP supports financial education?
- Stress has become the main cause of long-term sickness in the UK and can be triggered by financial instability. On average sickness absence cost UK businesses £11.5 billion in 2014, or £380 per employee* and therefore providing financial education in the workplace could reduce sickness costs for businesses
- Payroll professionals are well placed to educate people on how they can improve their finances through saving initiatives such as salary sacrifice and through the flexible benefits platforms that they provide; as well as offer alternatives to high interest borrowing through the provision of saving through payroll as part of their wider payroll, HR and employee well-being strategy
- 25% of employees do not understand their payslip** and only 37% have a vague idea of how to manage their net pay***. The CIPP delivers ‘understanding your payslip’ presentations to those in full-time education to prepare them for when they reach employment, and payroll professionals are best placed to educate their organisations employees on how understanding their payslip and managing their net pay
Benefits of providing financial education in the workplace
- It has been proven that employees feel motivated that their employer cares about their well-being when financial education is provided and this increases retention, which reduces recruitment costs
- Employees that take advantage of the financial education provided to them will, potentially, be less stressed and therefore more focussed in the work environment and less likely to take time off for stress related sickness which ultimately improves the organisations bottom line through increased productivity and reduced sickness costs
To find out more about financial education in schools, colleges, universities or the workplace, call 0121 712 1000 or email us.Email us
*taken from eef.org.uk
** according to e-responcerecruitment.co.uk
***taken from a Payroll World blog