Are Your Employees Stressing About Money During Work? Top 5 Benefits of Offering Personal Finance Training

We all know how stressful money problems can be. When financial hardship hits, it is often difficult to focus your attention on anything else. You become distracted and forgetful. When the money problems are yours, it is one thing, but when your employees are experiencing all of the symptoms of financial hardship while they are on the clock, it is an entirely different matter. A stressed out workforce isn’t a productive workforce. This is why offering personal finance training to employees is fast becoming the new normal. Below, we dive into why offering personal finance training to your employees is advantageous and good for your bottom line.

When employees are stressed about money, they are distracted and less productive.

The amount of time employees spend worryingdownload (1) about or addressing their personal financial situation is staggering. Up to 44% of people admit to spending time job hunting while at work. When added up, the amount of time spent distracted at work hurts your company’s bottom line. For every 100 employees on the payroll your company loses 22.5 person days of productivity per year due to financial distress. Keeping your employees stress levels low should become a top priority.

Offering personal financial training results in reduced stress-related medical costs.

Stress affects the overall health of employees in a images (6)detrimental and damaging way, increasing doctors visits and sick days away from the office. Most Americans report unhealthy levels of stress and 36% say their stress level has increased in the past five years. All of this stress literally adds up to affect your bottom line. The result is 1 million people missing work each day due to stress, robbing the economy of $300 billion in productivity.

Personal finance training is cheaper than replacing a burnt-out workforce.

Office burnout is increasing at alarming rates. downloadBurnout takes previously impressive employees and reduces them to a drain on your bottom-line. Replacing a burnt-out employee can cost upwards of one-and-a-half times more than that employee’s salary. Educating your workforce about their personal finances will keep good employees around for longer and will help those who are already struggling.

Getting educated about the ins-and-outs of personal finance will yield lasting results.

While your employees are on your payroll, they images (7)are your responsibility, but if you are a truly invested boss and business owner, you will feel a connection to the future success of your employees, too. Workers are more likely to save through the workplace than on their own and 82% say they participate in workplace retirement plans. This means that most employees are planning for and saving for their future while working now. It would then stand to reason that a better educated workforce would save more for their retirement. The data supports this: “Workers who received financial education when they were 40, along with regular follow-ups, increased wealth in retirement by 10%.”

Personal finance training will soon become the norm.

images (8)Offering a comprehensive benefits package to employees, including health coverage and personal finance training, is fast becoming the expected norm. Workers have already identified increasing levels of trust in their employers and almost two-thirds of employees indicate a need for financial advice to help them achieve their goals. More than 90 percent of employers said they want to start or expand their financial training programs. When a workforce is expecting improved benefits, it is best to adopt early in order to appear with the times and to attract and retain qualified employees. If you don’t keep up, it might be harder to attract qualified employees in the future.

 

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