As per research by PwC, 40% of the American employees under financial stress spend 3 hours or more at work, worrying about their financial issues. Almost 20% accept that the stress related to paying their debt impacts their productivity at the workplace.
Inability to handle personal financial issues can cause serious problems like anxiety, resulting in an employee’s poor performance. To create a healthy work environment it is essential to consider your employee’s financial well-being. Introducing your employees to financial literacy is an effective method of improving their financial wellness.
What is financial literacy at the workplace?
Financial literacy is the knowledge of effectively using various financial skills to make informed and effective decisions. It includes personal financial management, such as saving, investing, and budgeting. Financial literacy at the workplace ensures that the employees can handle their financial issues and resolve their financial stress without much trouble.
What do financial literacy programs look like?
An effective financial literacy program includes the following fundamental components:
1- Budgeting & Savings: The program aggressively trains the employees on how to track their spending patterns, identify financial responsibilities, and know the debt system.
2- Taxation: It helps employees learn all about the taxation system.
3- Investment: The employees get extensive training about the different investment channels and the risks involved to help them manage their financial goals.
4- Holding good credit history: It educates employees about the importance of holding good credit history and monitor their credit score.
5- Keeping away from fraud: The program teaches ways to identify and subsequently avoid falling prey to fraudsters.
How can it be incorporated into your company culture?
1- In-campus financial adviser: A financial expert in the organization can instantly offer his or her advice to the employees under tremendous stress and anxiety and comfort them.
2- Teleconferencing facility: An organization can tie up with a financial education firm. The financial expert at the firm will offer their advice to the employees via phone to achieve financial wellness.
3- Setup physical workshops: An organization can also arrange a financial literacy workshop in the office. A group of trainers conducts the workshop for a fixed duration on a monthly or bi-yearly basis.
4- Signing up for online financial courses: Many academies offer excellent financial literacy for employees through their cost-effective online courses.
How does it benefit employees?
There are four primary ways by which employees can benefit from a financial literacy program:
1- Increases productivity: By getting rid of money worries, they will focus better at work, which will result in a productive workplace environment.
2- Relieves stress: Financial literacy will help employees feel more secure about their finances, hence, will lower employees’ stress.
3- Aids recruitment and retention: A financial program in the list of employee benefits indicates that the company cares about the employee’s financial well-being. It attracts talented employees and increases employee retention.
4- Helps in business growth: With basic financial education, employees will understand their role in growing the company’s business.
How does it build a good culture?
A fundamental financial education helps employees smartly manage their financial matters while increasing their productivity at work. The peace of mind they enjoy at work makes them more likely to remain in the same job. As a result, the organization builds a healthier workplace environment and earns a reputation of being a good employer.
Employees are often surrounded by many financial concerns. A financial literacy program will help them gain better control over their finances and stay in their best mental condition.
