Employers are being urged to take note of the negative effects post-Christmas “financial hangovers” - and longer term financial difficulties - have on their people. A new report, from the Chartered Institute of Personnel and Development (CIPD), calls on employers to offer financial education in the workplace, to combat the danger of stress and anxiety related underperformance associated with employees in debt.

The report found that 23% of organisations are already providing financial education to their employees.

Workplace financial education: a win:win proposition also highlights the dangers surrounding a financially ill-educated workforce. It can mean that the resources employers invest in innovative pay and benefit packages end up being wasted on employees who do not appreciate the value of what is being provided to them.

Charles Cotton, CIPD reward adviser, says: “Christmas and the New Year can leave families facing short-term financial headaches. But with the average debt for each UK family standing at 150% of its combined income, employers need to sit up and take note of the impact financial problems have on their employees.

“Employers may not think providing basic financial education for their people is their responsibility. But the impact of not providing it can mean a workforce pre-occupied or overwhelmed by their own financial problems, and unable to appreciate the value of the pay, benefits and pensions package the employer uses to attract and retain its best people.”