Promoting economic security among employees is a positive investment employers can make, and not just for the employees. Whether your workforce represents a new generation, your employees are nearing retirement or a mix of the two, your company will benefit when personnel are financially aware and responsible for their income and savings.
Several financial literacy programs offer insight into both the approach and effects of what works. While these are just a few examples, you can’t deny the impact!
In the Financial Wellness at Work Report, Staples has taken a unique approach to financial education for employees. The need for skills training was discovered when the organization investigated the underlying causes as to why employees weren’t enrolled or engaged in the company’s benefits program. Many longtime associates were struggling with debt or credit card issues, highlighting a need for finance education for employees.
Focusing on fundamental financial skills included covering topics such as managing spending, paying down debt, and saving for retirement. To engage employees, Staples devised and created online games available to all employees, and encouraged associates to take the time to join the program. In addition to the financial education, employees were able to engage in peer-to-peer collaboration, interactions, and healthy competition as the online game is played among a network of co-workers.
Through the program, employees learned about financial basics and role play situations to assess decision-making skills. Another program offered help for employees in completing tax returns.
As a result, Staples have realized a 32% improvement in employee retention, all from a modest investment. Employees, through improved financial literacy, have increased confidence and focus on work, morale, and productivity.
Oilfield service workers can ride an economic roller coaster in the oil and gas market. In a case study, Schlumberger, one of the largest oilfield services company in the world, is aware of this challenge and sought to stabilize and support employees with financial education.
Providing financial education and support, employees can set personal financial goals and take action that, in turn, means becoming more productive, motivated employees. Schlumberger uses this program, and these results, as a differentiator in highly competitive recruitment situations.
Even before engineers graduate college, Schlumberger increases loyalty by training these prospective employees on how to evaluate a company’s compensation and benefits plans, how to pay off loans, and how to set goals. While engineers receive financial education, Schlumberger recruits engaged and committed employees from the start.
Financial education opportunities don’t stop at recruitment; there are programs offered that last throughout an employee’s career at Schlumberger. Relocation programs, life change programs, and retirement education reflects a long-term approach that seeks to retain a dedicated workforce.
Through a commitment to long-term financial literacy project for employees, Citigroup developed a comprehensive plan to support workers using both internal expertise and external partners. The program was global in scope focusing on financial literacy through in-person, lunch-and-learn training focused on credit management and money management and supported by phone consultation and online advice.
Attendance at the training sessions was greater than expected, and employee evaluations of the training were very supportive. Employees communicated they wanted the training offered – and they wanted more.
Following training, Citigroup found an increase in the percentage of employees contributing to the 401(k) plan and, of those already contributing, an increase in the amount they contributed from each paycheck. Perhaps even more impactful for Citigroup were the high ratings and acceptance of the financial literacy training programs with almost 93 percent responding the training enabled them to make a decision or take action.
To differentiate from other businesses, improve recruitment or retention, or offer employees lifelong financial skills, consider partnering with Fundamental Finance Academy to create a financial literacy program customized to your business and employee needs. Not only will your employees individually benefit from offering financial literacy training, your business as a whole will feel the financial and workplace benefits!