Organisations should invest in financial training for staff, according to insurance group AXA.
Financial training should be seen as a larger part of improving employee engagement: AXA urges the government to do more to aid the take up of financial education. US research, it says, shows that return on investing in financial education is at a ratio of three to one on the basis of reduced employer costs such as lower absence levels due to less financial worry and related stress among staff.
AXA proposes an eight-point action plan that it has presented to government and employers in its Roadmap to Stability document. Among the recommendations are that government should offer clear monetary incentives to aid the take up of financial education initiatives by employers including a grant for small firms. If the plans are adopted individuals would also be entitled to attend financial training through their workplace and be allowed up to one hour a month during working hours to spend on personal financial matters.
The FSA already runs workplace financial training programmes for employers. The free-of-charge training comprises an hour-long seminar, given by a trained presenter, together with a free supporting guide for each attendee. The FSA has rolled this out to about 750 employers, reaching three million staff.