“The average employee spends 28 hours each month worried about, calculating, or stressed over finances, costing employers $5,000 a year in lost productivity.”

- The Federal Reserve

Your Employees are in Financial Pain.

Financial issues are the #1 cause of workplace stress. The Cambridge Human Resource Group states that a lack of financial education for workers is “the most critical unaddressed workplace issue.” As reported in USA Today, financial stress “is having an impact on the workplace, potentially draining productivity and increasing emotional stress on the job.”  

Dr. E. Thomas Garman, the recognized leading research authority on the subject, found that when financial distress spills over into the workplace, it contributes to such work-related occurrences as:

• Lower commitment to the organization
• Less satisfaction with pay
• Work time wasted dealing with personal finances
• More absenteeism
• Poorer health

Dr. Garman goes on to say: “Employers need to recognize that at any given time, in every workplace, part of the workforce is seriously financially distressed.” He estimates the annual cost to an employer for ignoring one worker’s financial illiteracy ranges from $750 to $2,100

In a survey by Workplace Options, 48% of workers admitted that stress affects how they perform at work. 40% of employees thought it was important for employers to offer employee financial education, and 60% said they would take advantage of employee financial education if it were offered.

The Federal Reserve acknowledged that financially literate workers make better decisions, leading to fewer absences and greater job satisfaction. Companies with financially educated employees experience decreasing expenses and increased performance.

Dr. Susan Jenkins of Idaho State University says, “Even a small increase in an employee’s financial security can add significantly to the bottom line.” Dr. E. Thomas Garman tells employers they “can expect $450 in positive job outcomes from each employee who slightly increases his or her financial behaviors and financial well-being.”

According to World at Work, “right after employees, employers are, perhaps, the greatest beneficiaries of workplace financial education.” An article from the Journal of Employee Assistance says, “Employers who respond to their employees will be rewarded with loyalty, gratitude, and improved productivity that will pay dividends for years to come.”

The Journal of Employee Assistance says, “Understand that your health insurance providers and financial advisors (such as retirement plan administrators) do not have the specific expertise and skills to help financially stressed employees resolve the many issues influencing their ability to function at work. The” 8 Pillars Workplace Financial Literacy Solution specializes in workplace financial education programs.  We bring together the leading experts in the implementation, communication and measurement of financial education programs at work.

The National Financial Educators Council offer conflict free workplace financial education.  There are no ulterior motives behind our educational programs—no insurance products to sell and no investments to hawk. Quality workplace financial education is the only product we provide, and we pride ourselves on delivering sound, clear advice with no strings attached. We look forward to meeting with you and sharing how we have helped other organizations like yours improve their company culture and bottom line by implementing an 8 Pillars workplace financial education program.

• Financial issues are the #1 cause of workplace stress
• 40% of employees admit that financial stress affect their workplace performance
• Most families are living paycheck to paycheck and are one financial hardship away from disaster

By Nick Hager, the Passport Series

An increasing number of employers understand the value of providing employee financial education and the impact it has on the employer’s bottom line.  With the heightened awareness of the needs of workplace financial education training there new ways to ensure their employees are more productive, happier and healthier.

A workplace financial education and employee financial education training helps employers avoid many of the problems other companies face.  Consider this statistics and the impact it can make on your bottom line.  Distress over financial matters is contributing to irritability, anger, fatigue, and sleeplessness for over 52% of Americans according to USA Today.

Listed below are several ways we can take the first steps to providing our employees a practical workplace financial education and employee life skill training.

Give employees financial peace of mind. Workplace financial education training will help you protect your employees and help them feel more secure.  Showing them how they can easily set up emergency fund and automate their savings plan is the first step.  Employee financial literacy will help your employees achieve financial security which in turn will lead to more productive employees.

Financial mindset.  Today’s newspapers are packed with negative news that really drains employee’s moral.  Knowledge that employees pick up from workplace financial education classes will combat the effect that negative news plays on your employees mindset.  

Employers you have the ability to empower your team with practical financial literacy training that will reduce their stress, thus reducing sick days.  Workplace financial education training will help employees eliminate all negative thoughts on money.  Their personal money problems will lesson as they pick up real world money skills through the employee financial education training course and you can measure the effectiveness.  

Debt.  One of biggest problems facing people is debt.  Debt is the cause of a medically diagnosed problem called ‘debt stress’ and costs employers across the country tens of millions of dollars in missed work.  One of the simplest employee financial education class we can teach is showing our employees how to eliminate and/or avoid debt.  

Just helping your employees learn how to budget properly can cause a major change in their spending habits.  Even the most basic workplace financial education course can make a big impact on the lives of your employees.

Account structure.  Another important element of employee financial education courses is showing them how to set up the right account structure.  Each employee should set up their checking account, savings account, IRAs, and brokerage accounts.  These accounts can be set up to work automatically. So when bills are paid automatically, money is saved & invested for you automatically.  This helps you keep a consistent investment plan in place and hopefully will help you achieve long-term financial security.   By providing your employees a practical workplace financial education they will have the skills to make the most of their life and become more valued employees.  Help you business while you help them by offering employee financial education training.