Companies can minimise the negative effects the recent stock market turmoil have on their staff by educating employees about the financial markets, the Chartered Institute of Personnel and Development has suggested.
According to Charles Cotton, benefits adviser at the CIPD, companies of all sizes can cut down on stress and depression caused by concern over share plans and pensions pots by educating them about the long-term nature of such plans and the tax-advantaged status they enjoy.
Reducing staff angst over such matters can ensure companies remain productive and prevent a rise in sickness absence at a time when they need to be performing at their maximum levels of efficiency.
Employers could also extend such financial training to cover mortgages and savings, said Cotton. “This comes against a backdrop of increasing mortgage costs for many workers, with some tempted to stop saving for their future by focusing on their mortgage repayments,” he said.
“By providing financial education, employers can help their staff acquire the financial knowledge that will allow them to shop around for the best mortgage deals allowing any savings to be redirected towards their savings.
“Providing employees with advice and education about financial matters will help them make more informed decisions about how to save for the future and deal with concerns when they arise,” he added.
“Better financial awareness will also help minimise the risk of people making inappropriate benefit decisions subsequently blaming their employer and impacting negatively on employee engagement, employer brand and possible litigation.”
