Financial angst in the workplace is more common than you realize. Around 60% of millennials constantly stress about money — which means they must be stressed in the workplace too. So, chances are this stress might be also impacting their quality of work.
To tackle this problem and add perks, companies are now thinking about implementing a financial wellness program. The interest in these programs mainly surged after the great resignation, when it got coupled with the complex economic environment.
But, should companies really be offering financial education to employees? Let’s find out here.
How Does Financial Stress Impact Employees and Employers?
Your employees might be dealing with many stressful financial situations. It can either be from a personal loan, debt, retirement savings, house maintenance costs, caring for parents, etc. These situations can greatly affect their productivity and engagement in the workplace.
In that case, if employers fail to provide financial education or don’t showcase the full extent of the company benefits, employees will start resenting them and will start looking for other job options.
When it comes to employers, the financial stress of employees can also affect them. It can lead to employee turnover, absenteeism, and health claims aside from being a major distraction at work. Therefore, companies should offer financial education to employees by taking these negative impacts into account.
“Getting a financial education program is worth more than losing qualified employees.”
Offering Employees Financial Education Is Good For Companies
Financial education is one of the best benefits that a company can offer to its employees. Providing financial education programs can support employees in resolving their financial issues outside of work so that they’re less susceptible to financial woes, making hardship withdrawals, or requesting salary advances.
Here are the several benefits of employee financial literacy programs.
1. Reduce Stress
A financial literacy program in the workplace can ease employee anxiety. It can teach them the skill to control and manage their expenses. They would understand the difference between dangerous and useful schemes — thereby, taking the right decision to improve financial health.
2. Better Retention
Good employees are always in demand. To keep them retained, you need to provide other benefits, such as financial education. In fact, you decide what is more valuable. Whether increasing 1% pay for employees as compared to your competitors or teaching them how to make the best use of their money.
3. Minimize Healthcare Expenses
The ongoing financial stress can negatively impact the mental and physical well-being of employees. The increasing cortisol levels can disturb the hormonal balance — affecting their mood, sleep, blood sugar, hunger, etc. — ultimately, increasing their healthcare expenses. If your company pays their medical expenses in that case, the premium will increase.
4. Appreciation of Non-Cash Remuneration
Some companies may provide gym facilities, daycare facilities, or stock options at work. These facilities usually benefit employees but replace some of their cash components. In that case, financial literacy programs can highlight the importance of these perks. It will help employees to understand their benefits and know the actual cost to the company.
Now that you know the many benefits of employee financial literacy, it’s time to invest in a financial education program. The best part is you don’t even have to create a program from scratch. Instead, you can bring various existing programs into your workplace — maybe online, a person, or a combination of both.
