MoneyMagpie

Dec 16

Financial support needed for small business workers

According to new research, Britain’s small business owners need to help their employees brush up on their budgeting and to help them understand how legislation can impact their workers’ personal finances in years to come.

The national survey, compiled by one of the UK’s leading free debt advice providers PayPlan and financial wellbeing specialist The Money Mentor Club, calls on employers to help educate their staff in regards to their finances, to avoid and tackle any personal debt problems.

After surveying over 2,000 UK employees, 87 per cent were found to be ‘sleepwalking’ towards financial disaster. This was illustrated by an absence of monthly budgeting (31 per cent), a failure to pay attention to financial news that could impact them (81 per cent) in addition to 1 in 10 staff admitting they were already in a desperate financial situation.

In a bid to tackle this, employers are being asked to do more to support their workforce, with PayPlan launching a new online toolkit designed to help with finances, from budgeting to debt management. The online resource also includes a guide for business owners to help understand the impact of personal debt on staff, a simple income and expenditure guide and advice on appropriate wording to use on staff intranets.

Jane Clack, money advisor at PayPlan, explains:

“People often link a lack of financial responsibility to those with low incomes and the ‘benefits culture’. However, this survey indicates an apparent lack of financial knowledge and planning across all levels of society and business.

“It’s concerning how little small business owners and their employees are planning for the future, notably with the lack of engagement into pension schemes and the little attention paid to changes in tax brackets, which are likely to have a significant impact on their own finances.

“With a large number of people already admitting they’re in a financially desperate situation, it’s essential that workers consider their financial situation immediately. Productivity and performance can be heavily impacted by debt-related stress, and this employers’ toolkit is a great start point for addressing these problems.”

Chris Masters from The Money Mentor Club adds: “When it comes to communicating and engaging on money matters, it’s not something that we are doing well – at all. Whether it’s a trust issue or personal comfort issue, we just don’t talk about money.

“As a nation, we’ve been through some pretty tough financial times, but the question is ‘have we personally learnt anything from the recession’? This new research suggests not.”

To find out more about the new toolkit, visit: https://www.payplan.com/employers-toolkit

Further details on The Money Mentor Club and access to the full Net Engagement in Finance report can be found at www.themoneymentor.club.

 

MoneyMagpie UKpower
Compare Current Accounts
Relish Business
Experian
Experian

Comments

Leave a Reply

Related Articles

 

Make Money and Save Money

ideas for everyone
 

AS SEEN ON AND AS FEATURED IN

Send this to a friend