If employees learn more about personal finance, a company tends to do better. Money troubles at home can lead to lower productivity at work, health issues and excessive turnover. Employees with financial literacy mean a company will get hundreds of thousands of dollars a year more. The weak U.S. economy has taken a toll on employee benefits like health insurance and matching retirement plans. With personal finance, companies will nevertheless have the opportunity to change their future for the better.
When working towards financial security, a company can do a lot more than give a paycheck to their employees. 20 hours of work every month is wasted on worrying about finances for those with financial problems reports the Durango Herald. Rather than spending what they make, the 40 percent of Americans spend 110 percent of what they make each year, while 57 percent don’t spending budget their money at all. Money and debt issues generally relate to relationship problems also. Fighting about financial security was a major reason 50 percent of the workers in the survey were divorced.
Getting financial literacy to help get the bottom line
Promoting employee financial education is the mission of the Personal Finance Employee Education Foundation. Thousands are added to a bottom line with financial literacy programs, reports the PFEEF. Results of employee financial education include improvement in productivity, morale and company loyalty. Financial literacy also helps with turnover rates, distractions at work, operational risk, and absents. PFEEF has an ROI calculator online with an investment model that helps companies see how it really will help their company. It said employee financial literacy generally has a return ratio of three to one.
Employee financial education happening
Financial literacy is a requirement of Weyerhaeuser which is a timber company that is based upon in Washington state. It was reported by Business Week that Weyerhaeuser gives all 14,000 of their employees financial education which gets them notices. Employees of the company were offered 40 retirement, benefits and wellness programs in just the last year of employment. Employees who attended Weyerhaeuser’s financial literacy seminars said that they were better informed about their retirement programs, 99 percent thought that they could now make better retirement choices, and 88 percent said they would change some of their retirement choices. Weyerhaeuser employees were glad the company offered the programs that they thought were very useful.
Discover more info 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
