Making the Case for Financial Literacy
Research shows that employers who provide financial education for their employees are repaid up to three times the cost of their efforts through reduced absenteeism, less staff time spent dealing with personal financial matters at work and increased productivity. By providing a quality financial education program for your employees, you’re helping to strengthen your workforce and making sure they’re all getting the most out of their salaries.
Financial stress and worker productivity
- 25 percent of employees are financially distressed. (Employee Financial Well-Being, 2014)
- According to the 2015 Employee Financial Wellness Survey, one in five employees report that money issues are a distraction at work and 37 percent say they spend three hours or more each week thinking about or dealing with personal finance issues while at work.
- 32 percent of U.S. adults aren’t saving anything for retirement. (NFCC, 2014)
- 40 percent of employees report wanting help in achieving financial security (MetLife, Inc.)
- Employers observed the following issues when employees are experiencing personal finance stress:
- Increased absenteeism
- Frequent personal phone calls
- Lack of ability to concentrate
- Wage garnishment
- Issues with bankruptcy and company image
- Increased risk of fraud and/or theft
Effects of Financial Education
In a series of before-and-after surveys conducted in places that held workplace financial education sessions, the Federal Reserve discovered that participants paid fewer bills late, reduced installment debt by 14 percent and increased 401(k) contributions by 70 percent in the three years following the program.
