This question struck in my mind when I was writing a post on Financial Planning for youth. I discussed this question with several of my friends and colleges and figured out a possible answer.
Employers pay you salary, now it’s on you how to use it efficiently! You can do various things with it (the salary you get) save some part of it, spend some part, pay off your debt and invest as well.
Saving money is crucial for future. With the ever rising inflation it’s becoming the need of an hour. Combining savings and investing helps in planning a better future. Employers should encourage savings, yes PF’s do help but to a certain extent. Employers can encourage their employees to invest small amounts in SIP’s every month or say quarterly, they can also encourage employees to invest in FD’s and RD’s (for risk averse investors).
Habit of investing is just like eating an apple every day as it secures your future. Employers should motivate their employees to invest in a proper way this can be done via. News letters, organizing seminars, free counseling, etc. as an educational drive.
This is the area where many people fear (speaking from what I have noticed). Employers should arrange for tax planning sessions at least annually which can help the employees a big time in planning their taxes!
Things which an employer can do to financially educate employees:
Sending out News Letters:
An employer can disseminate news letters (online or offline) to employees which can teach them basics of investing, need for investing can be included with a good story line. CEO’s are heard, what better if a CEO advice his employees to save and invest more and spending less?
Arranging for a seminar:
Seminars on Investing, Tax Planning, Financial Planning, etc. can help employees. Seminars are more helpful than news letter because they are interactive sessions and when in doubt one can always ask questions. Yes news letters are equally helpful if the frequency is pre-determined.
Financial Counseling is yet another option available, one on one counseling can prove to be helpful but can cost a lot. Though an employer cannot sponsor it, can be offered at a subsidized rate to his employees.
Benefits to the employees:
- Better decision making
- Better Financials
- Secured futures
Benefits to the employer:
- Financially well to do employees
- Higher morale to work
- Low attrition rate (possibly!)
What’s your take on this? Comment & share your thoughts!
Image source – LinkedIn