5 Science-Based Benefits of Employee Financial Literacy Programs
- Business
Stress-Free, Productive, Satisfied Employees.
Most HR managers know that life is better with financial literacy programs. But is that knowledge based on an ethical feeling—or is there something else at work? There is Science.
Providing financial literacy does wonders for your company. Recent research shows that offering your employees a financial literacy program is good for your company's finances and Morale.
Financial literacy makes employees rich, and proud and helps them cope with unexpected situations—and can even help you get a Financially savvy workforce that outperforms competitors. Read on for 10 science-backed benefits of having a financial literacy program for employees.
Here are 5 science-backed benefits of having a financial literacy program for employees.
- Improved Productivity
- Make Your Company More Attractive
- Higher Employee Retention
- Financial Security Makes Employees Happier
- More Loyal Employees
Improved Productivity
Being a financially literate person can help your employee work more productively.
A study published in the Journal of Financial Counseling and Planning found that employees who participated in financial education programs showed significant improvements in their job performance. The study suggests that financially literate employees have higher attendance and lower financial stress.
Even just learning about personal finance makes a difference— Another Research found that financial stress was a major contributor to overall stress levels, and could lead to a range of negative health outcomes, including high blood pressure, heart disease, and obesity.
Make Your Company More Attractive
If you’re looking to recruit top talent, it might be time to get a financial literacy program. It may make your workplace more caring and attractive.
Companies were more likely to attract top talent when they had a financial literacy program. A survey of over 3,000 employees found that 76% of employees said that they are attracted to another company that cares more about their financial well-being.
Higher Employee Retention
There’s a reason why Financial Literacy Programs are so likable: you see, financial stress is a major cause of turnover in the workplace.
By providing financial education, you help your employees become more financially stable and reduce their stress levels.
This, in turn, will reduce turnover and save the company money on recruitment and training costs.
Financial Security Makes Employees Happier
Just having a feeling of financial security lift your employee’s spirits: a study published in Psychological Science in 2000, found that income is positively correlated with happiness.
When employees feel financially secure, they are happier and more motivated at work.
By offering financial education, you can help boost employee morale and create a more positive workplace culture.
More Loyal Employees
Finally, a financial literacy program can increase brand loyalty among employees. When employees feel that their company cares about their financial well-being, they are more likely to feel a sense of loyalty and commitment to the company.
A survey of over 1,000 employees found that 85% of employees who participated in a financial education program said that they felt more loyal to their employer.
This loyalty can translate into better job performance, increased productivity, and reduced turnover, all of which can have a positive impact on the bottom line of your business.
Conclusion
A crash course on personal finance teaches your employee how to manage their money, save for the future, and avoid financial disasters, which is especially important during tough times.
Though people may think we’re taking care of our employees, it’s mutual.
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