Could your employer help you to better manage your finances?

Money is something that we all worry about from time to time, some more than others. In this day and age money problems are at the root of great stress and worry for many people, and it seems that recently this is a problem that has grown steadily worse The cost of living in the UK, such as increased inflation on food and transport costs, in addition to five interest rate rises between August 2006 and July 2007 have resulted in many people finding it increasingly harder to keep up with their financial obligations and to manage their finances effectively.

Money worries can cause real headaches for consumers, and those that experience difficulties in managing and sorting out their finances can really suffer. The effects of money worries can cause immense stress, to the point where people may actually find themselves under too much stress to actually even go to work. As a result of this the consumer ends up being signed off sick, thus risking their pay and perhaps even their job ultimately. The employer ends up losing many man hours each year as a result of workers going off with money related stress, and this of course also leads to lost money for the company.

Why a campaign has been launched

One industry expert has stated: "Money is one of the major causes of stress for adults and as such it is a major cause of employee absenteeism." Recent figures have suggested that businesses in Britain lose close to £10 billion every year as a result of employees suffering from stress, and money issues are one of the major causes of stress amongst consumers in Britain. Many people struggle to find the time to even start looking at their finances, and this can simply make a bad situation even worse.

This is why on group in the UK has launched a campaign to try and get employers to help employees with their financial management by allowing them a little extra time to deal with money issues on a monthly basis. According to the financial group, AXA, allowing this extra time could really pay off for companies, as it could reduce money related stress levels and increase output and man hours. It would, of course, also benefit the employees, as they would have that little bit of extra time to sort out financial problems and money issues.

In order to encourage firms across the UK to participate, AXA has launched a campaign called ‘My Budget Day’, which is to be launched on 21st November. The campaign is being backed by various industries and agencies including the country’s largest union, Unite, and Confederation of British Industry. AXA has promised that on 21st November this year its employees will all be given the first hour of the day to deal with money related issues, and will then be given one hour each every month for the same purpose. All AXA asks is that other employers follow suit and allow each employee one hour off each month to deal with money related issues. One CBI official stated: "My Budget Day is a breath of fresh air and should be seen as a new and innovative way for employers to engage with and motivate their workforce."

Why employers should participate

An AXA official has reminded employers that many hours are lost every month through employees engaging in non-work related activities such as chatting or emailing friends, and states that giving each employee one hour a month to deal with finances is therefore not a great deal to ask but could really reap rewards for both the employee and the employer. "Employees are already costing their employers some £1.08 billion every week by wasting time on non-work related activities including gossiping, texting, logging onto social networking sites and emailing friends and family — that’s 40 minutes a day.

If businesses are prepared to let their employees spend over three hours a month wasting their time on text messages, then asking them to dedicate just one of those hours to helping their employees alleviate their money worries doesn’t seem like a lot to ask."

AXA officials claim that through reducing stress levels amongst employees by allowing them this extra time to sort out various financial issues employers will raise morale, could see a lower turnover of staff, should see the amount of stress related absenteeism fall, and could increase productivity and output amongst employees, who would not have money problems on their minds all of the time. Officials are claiming therefore that both the employer and the employee have something to gain from participating in this scheme.