Financial Decision Making: Is your team well equipped?
The most rampant concern in HR is the complaint that many of the staff don’t think 'commercially' enough. Employees make decisions without thinking of the financial implications, pass up opportunities to cut costs, lack the 'commercial savviness' for what makes a good 'business' decision.
Is your business facing this problem too? Are your employees making bad financial decisions which is costing your company and putting its future at risk? Do you think training the employees to upskill their financial knowledge is the solution to your problem?
Before engaging into problem solving exercise for this issue, we need to realize two important things:
Not everyone is good or bad at making finance related decision. Level of financial literacy or knowledge is not similar across the board
A company also needs a way of defining what are the business objectives that employees should aim to achieve through financial decision. After clearly outlining and articulating the objectives, you'd need a simple way of assessing how people in the business measure up to that standard
Fortunately, this is what we designed our Financial Literacy Diagnostic to do.
A financial literacy diagnostic tool will identify those people who are likely to make a good financial decision and those who take a risk every time. It will measure their technical competencies versus behavioral confidence with respect to financial knowledge. But perhaps most importantly, it’ll define what good decision-making practice looks like in your business, and what drives it in terms of skills and knowledge.
In essence, this diagnostic provides you with the data to create a 'lens' that will inform all your training provision – with respect to financial skills – giving you the confidence that all your training supports and develops the business commercial objectives.
Has this article piqued your interest in our diagnostic tool? Want to find out the level of financial literacy within your organization?