Should employers be concerned with workers’ financial well-being?
The consensus from academic research, professional and trade associations, media, and leading employers is that employee financial problems negatively impact the employer’s bottom line. Employers who provide employees access to information and resources to increase their personal financial literacy and money management behaviors improve their profitability.
The strong correlations among personal finances, stress levels, health, and family relationships are well established. So are the correlations between financial well-being and the direct employee costs of absenteeism, administration, lost productivity, and turnover. An employee’s financial well-being conditions his or her job satisfaction, engagement, and productivity. Low engagement from just one employee impairs the productivity of co-workers.
Studies show that employee financial wellness can improve morale in the workplace. Benefits of financial wellness programs in the workplace include:
- Improvement in workplace productivity
- Improvement in employee morale
- Improvement in organization loyalty
- Reduced absenteeism
- Reduced turnover
- Reduced workplace distractions
Financial education programs can be a cost effective benefit that can create a more focused, engaged, and productive workforce.
To learn more, visit the PFEEF (Personal Finance Employee Education Fund) website