Cultivating Your Employees’ Financial Literacy Through Work Benefits
By: Britainy Boessel (Zane Benefits) June 2016
Too many Americans graduate high school, earn their college degrees, and land a job, yet still lack basic education or experience in financial planning. Additionally, large numbers of Americans have accumulated massive debt for a variety of reasons, including education, car repairs, or medical bills. This combination of excessive debt and financial illiteracy creates stress and decreases an employee’s ability to properly focus on and engage in his or her work. Such stress also contributes to increased healthcare costs. Companies have the power to mitigate the consequences of this financial illiteracy by providing financial education and guidance – in addition to typical work benefits – to their employees.
Financial Stress Costs Companies
Many Americans exist in a state of perpetual stress over financial issues, and this negatively impacts their employers. About 63 percent of Americans are living paycheck to paycheck, while 53 percent of Gen-Xers are stressed out when dealing with their personal finances. A large percentage of them admit to being distracted by these issues at work.
Financially stressed employees cost businesses over $100 billion annually in lost productivity and profit due to high turnover rates, absenteeism, and healthcare claims. One piece of research shows that approximately one in five employees admits to having unexpectedly taken time off from work within the past year to deal with a financial issue and/or having taken time while at work to focus on personal financial difficulties. Of those employees concerned about their finances, 39 percent admit to spending a minimum of three hours at work each week thinking about or dealing with their financial issues.
Financial Literacy Training
To combat these problems, companies should focus on fostering financial well-being in their employees. The most effective financial wellness programs are both personal and comprehensive, providing each employee with a complete picture of his or her particular financial health as well as support for taking care of short-term and long-term needs. Such programs should help employees create financial plans and provide tools for managing those plans. Important topics to address with employees include health insurance, budgeting, building an emergency fund, improving credit, and saving for retirement, among others.
The good news here is that financial wellness programs seem to decrease employee stress and employer costs. Financial Finesse, a provider of financial wellness programs, reports that one of its largest Fortune 500 clients saw reduced healthcare costs of 21.57 percent for heavy users of its financial wellness program, in comparison to only 4.19 percent for non-users.
Conclusion
When offering work benefits, including health insurance, companies should consider educating their employees on financial wellness and supporting them by helping them to create and maintain financial plans according to each employee’s distinct needs.
Categories
- Benefits Resources
- Bonding
- BOP
- Business Insurance
- Commercial Auto
- Commercial Property
- Company News
- Construction
- Crime Insurance
- Cyber Insurance
- Directors & Officers
- Employee Benefits
- Employment Practice Liability Insurance
- Entertainment
- General Liability
- Health Insurance
- Healthcare
- Healthcare Reform
- Homeowners Insurance
- Hospitality
- Manufacturing
- Medical Malpractice
- Mining & Energy
- Nightclubs
- Personal Auto
- Personal Insurance
- Professional
- Restaurants
- Retail & Wholesale
- Risk Management Resources
- Safety Topics
- SBA Bonds
- Security
- Seminars
- Technology
- Tourism
- Transportation
- Uncategorized
- Workers Compensation
Archives
- May 2021
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- November 2018
- September 2018
- August 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- February 2013
- November 2011
- October 2011
- September 2011
- July 2011
- June 2011
- March 2011
- November 2010
- October 2010
- September 2010
- April 2010
- February 2010
- November 2009
- October 2009
- November 2008
- August 2008