Financial Education in the Workplace

SHRM on Personal Finances

A 2014 SHRM Survey found that 37% of HR professionals agree that employees at 37% their organization have missed work due to a financial emergency in the last year, and 13% were terminated due to financial issues.

“Anxiety related to finances could be a growing source of employee stress that has a direct impact on health care costs, absence and productivity,” the study concluded.

The most common financial services that organizations offer employees are retirement planning and consultation (81%) and financial literacy training for investing (42%). Less prevalent financial services include financial literacy training for basic budgeting (25%) and credit score monitoring (8%). Typically this education focuses on Wall Street investment options and omits topics such as life insurance and annuities.

Educational Solutions

Educational Solutions
Providing comprehensive financial literacy training creates loyal, positive, and productive employees. Benefits include:

– Increased productivity by reducing personal financial stress – Reduced absenteeism
– Increased satisfaction and loyalty
– Reduced stress-related illnesses and mental disorders
– Increased contributions to the company 401(k) program
– Decreased costs from wage garnishments and bankruptcies.

Employers can expect $450 in positive job outcomes from each employee who slightly increases his or her financial well-being.

– Dr. E. Tomas Garman, Virginia Tech University

Even a small increase in an employee’s financial security can add signifi- cantly to an employer’s bottom line.

–Dr. Susan Jenkins, Idaho State University

Money management strategies, including budgeting and investing, may increasingly be considered as a part of workplace stress management and wellness initiatives.

– SHRM study, June 2014

Financial Education Courses

Financial Education in the Workplace suggests that companies offer diverse courses that include both non-Wall Street investment strategies as well as traditional educational offerings. Topics may include:

– Developing a budget and reducing debt
– Auto, home, disability, and life insurance
– Tax shelters through life insurance policies – Annuities
– College planning alternatives to 529 plans
– Social security income strategies
– Tax-free retirement planning
– Stock market dangers and alternatives