Job security has moved to top of the list of what is preying on people’s minds. And it seems that Australian employees were nervous even before the Federal Government waived the red flag and proposed a pep up for the economy. Money 101’s Word from the Street survey was conducted in late January. Eight out of ten interviewees listed job security as their number one concern. Mortgage repayments were a distant second.

The latest results from global market information group TNS which recently surveyed 4700 people aged 16 to 64 on how the global financial crisis is affecting consumer sentiment backs up this view. Consumer confidence is on a down hill slide and most people believe that the financial crisis will continue for another one to two years.

Depression not just recession

The TNS survey showed that majority of Australians surveyed (57%) also perceive this downturn as qualitatively different to other downturns. Australians are expecting a depression rather than recession.

What does this mean for employers?

Up until recently the major impact of the downturn have been losses on the share market and the flow on effect on superannuation values. December 2008 saw the beginning of redundancies in the financial sector, mining and manufacturing.

During 2009 the slide in consumer sentiment and changed financial priorities will begin to be felt by businesses across industry sectors.

The challenge for management in such a downturn is to get the best out of core staff. This means harnessing staff commitment in a period of challenge, keeping morale high despite the gloom and doom in the newspapers and fostering unity in adversity. One way companies and HR managers can take a lead in this is by keeping staff informed.

New challenges need new tools

Money 101’s business is delivering financial literacy programs online to employees. The current global slowdown takes Australian companies and employees into uncharted waters and requires a new approach. It is no longer sufficient for employees to understand their personal finances it is also essential that employees begin to understand the basics of how our economy works and intersects globally. For this reason we have developed a new product; Economy 101.

Economy 101 takes the learner through basic economics and explains terms that he or she will be reading or hearing in mainstream media such as household, business and government sector, the business cycle, cash rate, the Australian Dollar exchange rate. We explain what is meant by financial markets, securities, direct finance, financial intermediation, bank spread, and the effect of credit market on Australia’s securitisation market. We also provide a detailed introduction to managed funds. 

Take a look at what staff of one of Australia’s major banks are saying about Economy 101:

“….this program is very good - especially if you want to make sure you are on track with the funds you want to retire with. I will be using the budget planner to pass on the customers/friends & family” 

“This is great! Can I give it to other people? We should get all staff to do this and then as many customers as possible” 

“[The Money 101 program]….has helped me to actually find out how much money I am spending and where I am spending.  By doing this I was able to budget myself and curb my spending on non-necessary items.  I had a goal to have an investment property by the end of this year, and I have now achieved this goal, and i do credit this program with helping me along the way, it made me aware of my spending and how I can be a little smarter with my finances – thanks” 

“Unfortunately most people do not understand Financial Literacy, and Bank staffs are included. Even though we work for a Bank it doesn’t make us any more literate then the general public. This is a great initiative. If we understand our own situation, we are able to assist customers more effectively. Thank you for the opportunity.”