HR is being called upon in the fight to keep UK employees solvent and financially healthy.
Insurance giant AXA is asking HR to put aside an hour a month for employees to spend on personal money management.
The initiative is supported by both the CBI and the UK’s largest union, Unite.
David Fleming, Unite national officer, said: “The link between workplace stress and money is established. Indeed, the biggest cause for the UK’s stress and depression is money worries. Stress affects around 20 per cent of employees in this country, so helping employees to get to grips with their finances will improve a company’s chances of enjoying the benefits of a stress-free workforce.”
AXA is encouraging businesses to take part in My Budget Day which will take place on 21 November this year. It is calling for UK HR directors and business owners to start thinking now about how they can make the scheme work for their employees.
According to AXA’s findings during a year long financial social experiment of 20 households, the 10 households that received financial advice were collectively £50,000 better off at the end of the experiment while the households left to their own devices actually got collectively poorer. They frittered away a quarter of their savings and the group saw a three per cent reduction in their net wealth.
