Blog

Educating employees about personal money management is likely to benefit the employer as much as it will the employees.  That’s because employees with financial problems tend to have lower productivity than financially healthy employees.

Much of the financial education employers do these days focuses on retirement education to boost employee participation in the employer’s retirement plan.  While this is valuable, it fails to address far deeper financial issues that affect not only plan participation but worker productivity that’s so essential to an employer’s bottom line.

The issue isn’t necessarily about higher wages.  Often, it’s about how employees can make the most of their wages.  Many employees don’t know how to manage their money, how to save it, or even how to spend it wisely.  Consequently, workers may run up debts, make bad spending and investment decisions, and worry about their finances.

These financial problems fall right to the employer’s bottom line.  Struggling employees spend work time talking to creditors, co-workers, and supervisors about their money problems.  They come in late or call in sick to tend to financial difficulties.  They also are more likely to suffer health problems, be injured on the job, steal from employers, or quit work.  Conversely, employees who feel more secure financially have fewer problems on the job, and are more loyal, focused, motivated, and enthusiastic on the job.

The notion of financially educating workers isn’t a novel concept in the workplace.  Many companies have started providing workout facilities and health information to employees because healthier employees reduce employer health-care costs.  Why not financial education, as well?

These problems can be avoided by simply providing fundamental financial education through such avenues as workshops, seminars, and one-on-one meetings with employees.  The education programs should touch not only on investing, but employee benefits, credit and money management, and consumer protection laws.

To assist employers who desire to provide financial education to their employees, we offer a Financial Fitness Program that focuses on a wide variety of financial planning topics.  To learn more about this educational program, just call or email us.