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Bradly Stevens MBA, LUTCF®, CLU®, ChFC®, WMCP®, CEPA™

(909) 307-4945

The Power of Financial Education: Why Companies Should Invest in Their Employees' Financial Well-Bei

The Power of Financial Education: Why Companies Should Invest in Their Employees' Financial Well-Bei

| March 26, 2024

In today's fast-paced and dynamic economy, financial literacy is more crucial than ever. For both individuals and businesses, understanding personal finance and making sound financial decisions can have a profound impact on overall well-being and success. One area where this rings particularly true is within the workplace. Employers who invest in the financial education of their employees not only foster a more financially savvy workforce but also reap numerous benefits themselves. Let's delve into why financial education for employees is paramount, backed by credible sources.

1. Improved Employee Productivity and Engagement

Studies have consistently shown that financial stress can significantly impact employee productivity and engagement levels. According to a survey conducted by Salary Finance, employees who report financial stress are twice as likely to report poor health, leading to more absenteeism and presenteeism in the workplace. By providing financial education and resources, employers can help alleviate financial stress among their workforce, leading to increased focus, higher morale, and greater productivity.

(Source: Salary Finance)

2. Enhanced Employee Retention

Financial wellness programs not only attract top talent but also help retain valuable employees. According to a survey by the Employee Benefit Research Institute, 60% of employees report that benefits are a significant factor in deciding whether to stay with their current employer. By offering financial education and support, companies demonstrate their commitment to the well-being of their employees, fostering loyalty and reducing turnover rates.

(Source: Employee Benefit Research Institute)

3. Cost Savings for Employers

Financially stressed employees are more likely to make mistakes, take time off work due to health issues, and may even resort to borrowing from retirement accounts or taking out high-interest loans, all of which can have financial implications for employers. By investing in financial education programs, companies can help employees make informed decisions about their finances, ultimately reducing healthcare costs, absenteeism, and turnover-related expenses.

(Source: Financial Health Network)

4. Boosted Retirement Readiness

One of the key areas where financial education can have a significant impact is in retirement planning. According to a report by the National Institute on Retirement Security, nearly half of working-age households are at risk of not being able to maintain their standard of living in retirement. By providing education on topics such as retirement savings, investment strategies, and Social Security benefits, employers can help employees better prepare for their financial future, reducing the risk of financial insecurity in retirement.

(Source: National Institute on Retirement Security)

The importance of financial education for employees cannot be overstated. From improving productivity and engagement to reducing turnover and healthcare costs, the benefits for both employees and employers are substantial. By investing in financial wellness programs, companies not only demonstrate their commitment to the well-being of their workforce but also position themselves for long-term success in an increasingly competitive marketplace. As we navigate the complexities of the modern economy, empowering employees with the knowledge and skills to make sound financial decisions is not just a smart business move – it's essential for building a brighter future for all.

If you are interested in scheduling financial education meetings for your employees we can help, call Brad Stevens at (909) 307-4945