It’s a tough time financially for many businesses and individuals, with both trying to do more with less. But could helping one improve the other?
Survey results from the Employee Financial Education Division (EFED) found that more than 60% of employees were dissatisfied with their personal financial situation.
The Financial Education in the Workplace Survey also showed that one in four employees felt financially distressed. This leads to reduced productivity as these employees are spending an hour each day at work dealing with personal finances.
“Employers need to be concerned with the financial wellness of their employees as it directly impacts the productivity and profitability of the company,” Frank Wiginton, CEO of EFED, said, speaking at the Human Resources Professionals Association Conference in Toronto.
With 87% of employees wanting financial education, employers have an opportunity to provide a real, meaningful benefit to their employees. “Financial education, not just information, proves to be an important and effective benefit for employees. By including financial topics beyond pensions and retirement employees will be able to have greater understanding and context around their finances”
Issues such as setting and achieving goals, building a net worth statement, and income and debt management are key to helping employees reduce their financial stresses. “45% of employees feel their level of financial stress today is high to overwhelming. With a comprehensive employee financial education program, employers can reduce the stress of employees, increase their wellness and productivity, and give them a better quality of life,” Wiginton added.
When implementing a financial education program for employees, employers need to ensure they:
- Get senior level support
- Identify the proper delivery method
- Identify resources for programs; and
- Build a plan to engage employees