The Chartered Institute of Personnel and Development (CIPD) is calling on government to ensure that its approach to improving financial education among the general public is joined up with work that is already being done by employers and professional bodies.
This is the main recommendation in the CIPD's response to the Thoresen review of financial advice. The Treasury commissioned the review to consider how best to raise levels of general financial education and awareness among the general public.
The CIPD has produced its own financial education guidance, available free from the CIPD website. The guidance demonstrates the role that financial education can play in improving financial awareness of staff, reducing labour turnover costs and increasing employee pension contributions.
It says benefits to employers of improving financial education would include a better understanding amongst employees of the true value of their benefits package and a reduction in stress or poor performance caused by non-work related money worries.
Charles Cotton, CIPD reward adviser said: "The CIPD believes that any national approach to improving the financial understanding of consumers must build on the work already being carried out by employers. As our guide shows, many UK organisations are now offering financial education to their staff, which can deliver benefits for both the employee and the organisation.”
He added: "Related research shows that any national education programme must be developed in tandem with people's individual learning styles. Not doing this will result in failure. The Government would do well, therefore, to focus on the educational and financial aspects of their programme in equal measure."
