Many companies do not realize this, but many of their employees struggle with an escalating epidemic that is affecting today’s workforce.
One in three employees report that issues with personal finances serve as a distraction at work, according to a report published by the Center for Financial Services Innovation. Financial stress contributes to lost productivity, increased absences and healthcare claims, higher turnover and costs associated with workers who cannot afford to retire on time, the report also found.
The potential solution? Financial literacy education in the workplace. Financial consultant Kyle Sanders is here to share why and how this can help not only employees, but also their workers.
When employees spend time worrying about their personal finances, productivity is what takes the biggest hit. Not only are they abusing company time, but important work is not completed, further placing companies in a dire situation. Moreover, workers recognize the severity of this epidemic, whether their companies do or not, as employees admit their concerns with personal finances interfere with their quality of work, the Personal Finance Employee Education Foundation found.
For these reasons, there is a very compelling business reason for employers to advance the well-being of their workers through financial literacy education in the workplace.
Increasingly, companies are beginning to recognize the value in non-traditional, company-supplied benefits that will strengthen employees’ financial wellness. In fact, according to a 2015 study conducted by Aon Hewitt, 93 percent of 250 employers surveyed said they want to do more to enhance employees’ financial well-being than providing 401(k) matching.
The desire to provide unique employee benefits isn’t the only reason financial literacy education in the workplace is gaining in popularity. Today’s workforce also demands a benefit that enhances their entire family’s financial knowledge for two very significant reasons. First, we are entering what’s being referred to as “The Great Transfer of Wealth.” Secondly, many parents aren’t very comfortable speaking to their children about money and could use some guidance on how to raise financially literate children.