A company doesn’t do also when their employees can’t even deal with personal finances. When somebody has money difficulties, often times health issues, lower productivity and excessive turnover is the result. A company is more likely to make hundreds of thousands of dollars more a year with employees that are literate in finances. 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 chance to change their future for the better.
Employee education to secure finances
When working towards financial security, a company can do a lot more than give a paycheck to their employees. The Durango Herald reports that Employees with serious financial troubles can waste as many as 20 work hours a month worrying about their finances. A survey was done by creditcards.com showing that 57 percent of individuals do not budget when 40 percent spend 110 percent of their income rather than less. You will find also more issues in relationships when you will find money difficulties. 50 percent of workers divorced said financial security was the reason.
Financial literacy connection to bottom line
Promoting employee financial education is the mission of the Personal Finance Employee Education Foundation. The PFEEF claims that financial literacy programs contribute hundreds of thousands of dollars each year to a company’s bottom line. Financial education for a company’s employees with help with company loyalty, productivity also as morale. Financial literacy also helps with turnover rates, distractions at work, operational risk, and absents. The PFEEF provides a return on investment model and an ROI calculator online that a company can use to estimate the benefits of employee financial education. Three to one is how employee financial literacy generally works out.
Making employee financial education actually happen
Financial literacy is part of the corporate culture at Weyerhaeuser, a Washington state timber company. 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. 88 percent of employees that attended a seminar said they’d change retirement choices they had made when 99 percent of everyone recognized they should make changed in their retirement choices. Weyerhaeuser employees were glad the company offered the programs that they thought were very useful.
Additional reading
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
