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How To Teach Your Employees Financial Literacy
Posted by Insightlink on 09/30/22
Financial stress is more common in the workplace than you might realize. According to statistics, 53% of adults are worried about their financial situation, while 78% of American adults live paycheck to paycheck. While this might appear as a personal problem for some, it can negatively impact your workforce. When employees face a challenging financial situation, they are more likely to miss work and perform poorly.
Therefore, as employers, it's crucial to focus on improving the financial education of your employees to help them gain the confidence to enhance their well-being without losing focus at work. Being financially literate can also help them better manage their finances and prevent them from ending up with financial woes. In return, you will get a higher employee loyalty and retention rate, which can be cost-effective in the long run.
Photo by Towfiqu barbhuiya on Unsplash
However, financial literacy programs are not just about teaching your employees how to budget or save better. It's more complicated than that, especially if you want long-lasting results.
Why Should You Educate Your Employees About Financial Literacy?
Everyone wants to be financially literate, but the lack of education prevents them from doing so. According to Standard Poor's Global Financial Literacy, 57% of American adults are still illiterate when it comes to finances. And when an individual doesn't know how to budget better or save more, it could lead to a rise in personal debts and loans, car repairs, and medical bills. The combination of these two—excessive debts and financial illiteracy—could transcend their ability to contribute and focus on their work.
How To Teach Your Employees Financial Literacy
A successful financial literacy program is personal and comprehensive for your employees. It provides a clear picture of their financial health and what support they need. However, it is not a one-size-fits-all approach as many things affect a worker's money situation, such as gender, age, and socioeconomic background. As an employer, it is best to create an individualized approach when developing such programs. But where do you get started? Here are four steps you can consider to support and empower your employees.
Establish your goals
Identifying your goals for the program is the first step to creating an effective financial literacy program. Is lowering absenteeism more essential to you than boosting productivity? Or do you want to give your employees a solid reason to stick with your company? Setting program goals will enable you to monitor progress over time.
Learn about your employees' financial concerns
Once you've established your goals, determine the topics your program will cover. The best way to do it is to conduct a survey and ask your employees what they want. Understand where their struggles are coming from by sending out a simple survey and see what topic they're interested in discussing, such as:
Design the program
Now that you've chosen your topics, it's time to design the program. Give your employees access to resources and information by creating your own employee financial wellness program or using one from a third party. Programs for improving employee financial literacy can take many different forms, like workshops, online groups, or one-on-one consultations with experts.
Establish a transparent support culture
Make an effort to establish a visible and transparent culture of support. Debunk the "money script" that discussing money is unacceptable by doing your share to minimize stigma and encourage open discussions about financial literacy. Set a good example for your staff by demonstrating the value of financial knowledge and openness. It will enable them to manage their financial stress and foster a more productive workplace.
Businesses must do more than pay their employees to remain competitive. A supportive corporate culture is the first step to consider when attracting and keeping great talents. Following the tips we mentioned above will be beneficial in actively helping your personnel reach their financial objectives, ultimately leading to long-term business success.
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AboutInsightlink Communications are experts in employee survey design, data collection and analysis. Since 2001 we've helped companies of all sizes measure and improve their employee satisfaction and engagement.
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