Reasons to Provide Employee Financial Education
As thriving in the current economy becomes more and more difficult, just as many more individuals are suffering from heavy stress related to their personal finances. And money problems don’t stay at home – people carry these burdens into the workplace too. It’s no wonder so many organizations and corporations are beginning to look into offering employee financial education to help relieve this stress.
In general terms, financial health can be measured across three key indicators: whether a person can successfully manage their finances day-to-day, whether they could handle an unplanned emergency expense, and whether they are able to save money for the future. There are many pathways toward reaching these capabilities, but a successful financial wellness program will address all three.
When an employer commits to providing employee financial education, the benefits can be amazing. For employees it means reduced stress, which improves their physical/mental health, engagement and satisfaction with work, loyalty to the company, and productivity. They feel in control of their lives and have more flexibility to make personal choices. Financially healthy workers also make better choices about their retirement and healthcare options.
From the company point of view, the same results also have benefit – improving employee financial wellness at work leads to more productive, satisfied, engaged, and loyal employees. Companies that provide employee financial education are perceived as having genuine concern about their workers’ best interests. Those employers foster happier, more collaborative company cultures and attract employees who are more likely to stay for the long-term. And programs can be presented at a relatively low cost that delivers a strong ROI.