Numerous studies have found that the majority of employees are living paycheck to paycheck and barely making it through each month. If the pandemic is anything to go by, savings are an important asset to any individual. A regular saving habit can be the difference between survival and desperation when life hands us unexpected situations that throw us off balance. Unfortunately, the education system does not prioritise financial literacy meaning that many individuals find it hard to make proper use of the money that they get every month. Your employees are likely in this category. The challenges faced due to illiteracy when it comes to finances results in lack of sleep, deterioration of health, worry, and stress all of which could result in underperformance in the workplace. All of this could be reduced or even completely avoided by providing employee financial literacy. This not only benefits your employees on an individual level but also has an impact on the performance of your business as a whole.
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Why You Should Provide Employee Financial Literacy
Here are 4 reasons why your employees need financial literacy:
Greater Focus and Productivity
With financial literacy, your employees will be empowered to improve their personal situations. This puts them in a good frame of mind which has a direct impact on their work.
Reduced Stress
Being in debt, or not having a sufficient amount of money is stressful. Even though your employees can cover their current commitments, they may experience financial stress ver price increases.
A workplace financial literacy programme can help them better manage their finances even in uncertain situations and this will reduce workplace stress which can result from:
- Borrowing money from loans
- Discussing their situation with colleagues
- Requesting for loans or cash advances from HR
Less absenteeism
When employees can manage their stress levels, they feel healthier and better. Their mood becomes balanced and positive which allows them to be more energetic and motivated to come to work
Better retention and loyalty
A workplace culture that encourages continuous learning makes employees feel valued and more inclined to remain with you. Providing financial literacy classes or opportunities makes your business more competitive meaning that you will not only retain your employees but will be highly attractive to the labour force.
Summary
Employee financial wellness programs teach your staff how to make informed and effective decisions about their finances. They walk away with lifelong skills and the motivation to build their personal finances and wealth. Investing in employee financial literacy is also a sure way of retaining your employees and standing out as a highly attractive employer to the workforce.
