How-to Information for Workplace Financial Education Programs

As the economic environment grows ever more complicated, the American workforce encounters increasing levels of anxiety and stress related to their personal finances. Workers may be showing up, but they’re unable to focus on work – they’re too worried about money. As these problems escalate, employers are turning to workplace financial education programs to make a difference.

Embarking down the path toward financial health represents a different journey for each person. However, a basic definition of financial wellness that applies to everyone has been stated by the CFPB as “a continuum – ranging from severe financial stress to being highly satisfied with one’s financial situation – not strictly aligned with income level”. A financial wellness program, therefore, should be multifaceted.

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Mechanisms for Workplace financial education programs Additions

The Issues Caused by Lack of Workplace Financial Education

Lack of workplace financial education programs leads to a plethora of problems for both employees and the organization. The anxiety employees feel over money causes health problems, both mental and physical in nature. Poor health leads to excessive sick days, decreased productivity, and substandard performance. And workers who lack money management knowledge are less likely to take maximum advantage of the benefit programs available to them.

Those same problems – low productivity, poor performance, absenteeism, and turnover – drag down the employer’s profits. And lower employee wellness drives up the company’s costs of providing healthcare insurance benefits. Financial education in the workplace has received increased attention recently due to the effects of money on employee stress.

Workplace Financial Education – the Benefits

Everyone involved benefits from workplace financial education programs : the employees, the employees’ families, the employer, and even the customers Employees receive relief from personal finance stress, which improves their performance and productivity and makes them happier and more eager to work. Less stressed workers report higher rates of job satisfaction and view their employers as caring and sympathetic. Financial wellness knowledge also leads to more efficient use of benefits, such as employer-sponsored retirement and healthcare plans.

From the employer viewpoint, financial education in the workplace delivers a high return on investment. Greater productivity, job engagement, and employee retention clearly relate to an improved bottom line. Less direct employer advantages of building workplace financial literacy include positive effects on employee morale and company culture, and reductions in costs to offer benefits such as healthcare plans.

Most Effective Aspects of Workplace Financial Education Programs

Although many choices are available for employers who want to offer a money management workshop in the workplace, the latest research has identified some features with the most promise. Employers would be well-served to find out first where their employees presently stand in regards to money management knowledge, so a survey, interview, or focus group to establish a baseline is indicated. The Consumer Financial Protection Bureau has developed such a survey.

Programs can be delivered online, in person, or through some hybrid combination of the two. Determining which modules will benefit your staff most is an individual decision, but some best practices include leveraging technological advances such as gamification; offering peer-to-peer encouragement; resources and content that comply with top standards for educational quality; and providing continuing education to keep financial knowledge in employees’ top-of-mind.