Personal finance is a challenge for many people. Think your employees’ personal finances are just that — personal? Think again.
Financial stress can impact your workforce in negative ways, like reducing worker productivity and increasing absenteeism. Yet, as an employer, you may not be aware of these personal challenges faced by your employees. In fact, financial angst is more common than you might realize. Studies have shown that a majority of workers are stressed about their overall finances, with many reporting that their financial problems are a distraction at work. As a result, employee financial education is a critical component of any corporate wellness program.
The current economic situation has many of your employees worried about their personal finances. Research has reported, “Financial stress is having an impact on the workplace, potentially draining productivity and increasing emotional stress on the job.” Employee stress correlates directly with reduced productivity levels, increased absenteeism, and low morale. In short, employee stress hurts your company’s bottom line.
Financial literacy can be learned and improved. Financial training that leads to employee financial wellness reduces employee stress and health-related problems. This employee financial wellness program teaches employees about financial planning, effective money management, how to budget, how to live within one’s means and how to save and invest for their future. With these key skills, an employee will be healthier with less stress. A healthy employee is a productive employee.
Why “Financial Wellness” Matters:
Financial stress leads to lower satisfaction with pay, lower commitment levels, higher risk of employee looking for side hustles eating into work time, unhealthy coping behaviors (such as alcohol and drug use) that spill over into the workplace, and wasted time spent on personal financial issues during work hours. Bottom line: financial strain heavily impacts your employees—both personally and in the workplace.
Absenteeism and wasted work time handling personal finances costs employers in lost productivity per financially distressed worker. Proactively addressing your employees’ financial concerns can improve their sense of well-being and transform your work environment over time. Research shows that after effective financial wellness training, 25 percent of workers will improve their productivity, and most of those people turn the corner in the first year.
When it comes to managing personal finances, many employees lack the basic knowledge and skills to make ends meet. One in four employees are seriously financially distressed. On average, up to 80 percent of them spend time at work dealing with their personal financial issues, wasting anywhere from 12–20 hours per month.
By integrating financial education with wellness programs, employers can help employees make better decisions about how they spend their earnings. Employers receive short- and long-term benefits after making the decision to teach personal finance in the workplace. A workplace financial literacy campaign can lower stress, boost productivity, decrease absenteeism, and contribute to an enjoyable work environment Today, more than ever, a business’ success depends on the personal development and success of its team members. Since 80% of employee learning takes place while at work, it makes sense for employers to offer a financial wellness program to their team. It’s a win-win for both parties. The worker learns how to get rid of financial stress, and the company gains a productive, more focused team member. Plus, implementing a wellness benefit is easier than most companies think!
The financial wellness program discusses how to achieve financial wellness and maintain it. It helps the employees:
• Understand the concept of financial wellness;
• Change their mindset about finances and adopt an abundance mindset;
• Develop an effective financial plan and specific action items to help them achieve their financial goals;
• Budget successfully so as to effectively live within their means;
• Save and invest wisely for a better future;
• Manage credit and debt well; and
• Handle events and problems that come up and can impact financial wellness.
In addition to this complete training solution, your employees will get:
• Budget and spending plan templates;
• Daily tracker to monitor spending; and
• A myriad of financial tools, workbooks and manuals to help your employees in their financial journey.