Through effective financial education, employers can expect increased return on their investment in employee benefits, heightened productivity, reduced business risk, and all the associated benefits of a more financially literate workforce.
> Maximise ROI on employee benefits
So much is invested across the board in employee benefits, but if employees do not fully understand the value of these benefits (e.g. share plans, options, pensions, performance pay), return on this investment is reduced. We believe the relatively small incremental investment in financial education to increase employee understanding is easily justified.
> Increase productivity
Both private and public sector research shows a measurable loss of productivity in organisations due to the effects of financial distress in the workforce. AXA has shown that 3.8 million people take time off work every year because of money worries. The research indicates that good financial education can alleviate much of this distress and so contribute to a measurable increase in corporate productivity.
> Risk management
Recent years have given rise to an increase in legal action brought against employers by disgruntled employees on the basis of insufficient financial education in the workplace. As a result, some companies are investing in clear and ‘provable’ employee education programmes to protect themselves from such claims - whether of substance or not.
While the business cases are clear, they will not be fully achieved with a traditional consumer-oriented financial education programme. IN POCKET is designed from the employer's perspective and, while still covering consumer content, goes much further in educating employees on topics specifically related to employee benefits and business finance basics. As a result, employees make better decisions at home - and at work.
