A company doesn’t do as well when their employees can’t even handle personal finances. Money problems at home can lead to lower productivity at work, health troubles and excessive turnover. Employees with financial literacy mean a company will get hundreds of thousands of dollars a year more. Health insurance and matching retirement plans have hurt employee benefits during the economy fairly bad. With personal finance, companies will nevertheless have the chance to change their future for the better. Resource for this article – Employee financial education is proven to boost the bottom line by Personal Money Store.
Educational financial security
When working towards financial security, a company can do a lot more than give a paycheck to their employees. 20 hours of work each month is wasted on worrying about finances for those with financial difficulties reports the Durango Herald. Rather than spending what they make, the 40 percent of Americans spend 110 percent of what they make every year, while 57 percent don’t budget their money at all. Money and debt issues generally relate to relationship issues also. 50 percent of workers divorced said financial security was the reason.
Company profits and financial literacy
The goal of the Personal Finance Employee Education Foundation is for employees to start getting their education. As outlined by the PFEEF, financial literacy programs help a bottom line be fulfilled with more money. Productivity improves, along with morals and company loyalty when employees are better educated in finances. Employees show up more often, are less distracted, do not quit as often and operational risks are minimized when employees have financial education. Companies are able to see how their company specifically could be helped with financial education on PFEEF’s website which has an investment model with an ROI calculator. Employee financial literacy means companies will get a three to one investment.
Employee financial education in action
Financial literacy is a requirement of Weyerhaeuser which is a timber company that is depending in Washington state. Business Week reports that Weyerhaeuser is acknowledged as one of America’s leaders in providing financial education to nearly 14,000 employees. 40 retirement, benefits and wellness programs just last year were offered to its employees. After a retirement seminar for employees, 99 percent said they could make better choices for their retirement while 88 percent they would change retirement choices they already did make. Participants within the program thought the seminars were a valuable employee benefit that enhanced their optimistic feelings about Weyerhaeuser.
Find more information on this subject
Durango Herald
durangoherald.com/sections/News/Columnists/Money_Savvy/2010/08/04/Workers_debt_can_be_companys_problem/
ROI
personalfinancefoundation.org/roi/roi-model.html
Business Week
businessweek.com/investor/content/jul2009/pi20090722_246198.htm
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