Companies spend thousands of dollars annually maintaining or improving their employees’ skill sets. Courses on health and safety regulations, new organizational systems and processes, and professional development are commonplace, but financial education programs are often limited.
Being financially literate – or having the ability to understand and utilize the skills necessary to manage money effectively – provides numerous benefits to both an employer and an employee. Below, we outline some of the most significant positive impacts of financial education.
1. Improves Employee Health & Well-Being
When someone is worried about their finances, it’s difficult to stop worrying about them when they arrive at work. And the more stress an employee carries, the more likely they will start experiencing health conditions.
These physical symptoms – such as high blood pressure, digestive issues, migraines, muscle tightness, and difficulty sleeping – result in more medical attention. Besides affecting an employee’s attendance, medical care for treating these conditions can increase your company’s medical insurance premiums.
When an employer offers financial education services, the opposite happens. Employees experience less financial stress and are likelier to be in a positive frame of mind. Learning financial skills helps employees feel more supported and confident about managing their financial situation.
2. Better Retention Rates
Today’s employees are likelier to be happy at work when they have an employer who invests in their success and helps them thrive. In the current hot job market, you need to provide as many employee perks as possible to distinguish yourself as an employer.
Offering upskill opportunities that help an employee in their personal life shows that you care as an employer. They also help keep your company competitive. Although almost 75 per cent of employees cite financial wellness as important, few organizations offer financial literacy services and courses. Debt-related benefits (like emergency loans and debt consolidation) are of interest to numerous employees across the income spectrum, yet only 20 per cent currently have access.
Besides attracting new talent, running a financial education program helps retain current employees. Offering financial literacy courses can incentivize staff to remain loyal to your company. Employees who are less worried about finances are also less likely to seek higher-paying employment elsewhere.
3. Greater Productivity
This 2020 study found that employees with poor financial literacy spend an average of six hours of work time per week preoccupied with money concerns. These employees are more likely to miss deadlines and create lower-quality work than their coworkers with high financial literacy.
Employees can focus better when they aren’t preoccupied with their financial situation. They’re also less likely to miss work due to stress-induced medical conditions, leading to greater productivity for your company. Employee morale is typically much higher, and the generation of creative ideas is more common.
Your employees’ financial education is a wise investment and offers benefits, including better employee well-being, retention rates and productivity. At SolveYourDebts.com, we offer a variety of financial wellness presentations for workplaces across Atlantic Canada.
Our presentations can be customized to the needs of your employees, and can cover topics such as budgeting, spending habits, credit reports, debt repayment strategies, signs of financial distress, and setting financial goals.
For more information about our financial education services, please contact us today.