Accountancy Firm Says Education is Key to Employee Financial Wellbeing

Many employers already recognise the moral and business case for supporting employee financial wellbeing – but a leading Midlands accountancy firm says not all businesses are taking the time to educate their staff on the nitty-gritty of their finances.

With International Week of Happiness at Work (20 – 26 September) upon us, Kevin Johns, managing director of Prime Accountants Group which has offices in Birmingham, Solihull and Coventry said educating people on effective financial management is invaluable to the efficiency of workforce today.

“It’s not uncommon for individuals to face financial worries at various stages of their life – this can be either dealing with debt, concerns over retirement or making the monthly budget work,” said Kevin.

“Many businesses today offer perks and financial plans that go a long way in helping employees manage their finances better.

“While this is important and a fantastic initiative, not everyone understands how or even why they can use these perks to their advantage.

“Today, there is a considerable lack of financial awareness, particularly when it comes to financial planning, credit card loans, short-term loans or even pension plans which some, particularly the younger generation, may deem unnecessary.”

Kevin said that employees often don’t understand the meaning of tax rises such as national insurance, with some even going to the extreme of assuming it doesn’t impact their everyday spending.

“I strongly believe that the workforce today is crying out for a broader educational programme that addresses a wide range of financial topics such as personal financial data, cash flow, taxes, retirement, company benefits, to name a few,” added Kevin.

“Offering personal financial education can help reduce employee financial distress, increase employee engagement and reduce direct costs associated with low levels of financial wellness.

“Educating employees about their finances can inevitably go a long way in maintaining a positive mental health attitude of our workforce and can ultimately improve the productivity of a business as a whole.”