Still, it’s sometimes difficult for employers to appreciate just how much their staff is worth.
For example, would you ever consider educating your employees about money? Although it doesn’t appear as though there would be an immediate return for doing so, it’s definitely worth considering.
3 Reasons You Should Educate Your Employees About Finances
As you probably know, HR is obligated to explain benefits and perks to employees. Your company’s employee education efforts don’t have to end there, though. Here are three reasons you should continue teaching your workers about how to succeed with their finances.
1. It’s What Employees Care About Most
It should come as no surprise that employees largely choose their employers based on how much they will be paid.
However, over the past few years, a lot has been made of other potential influencers, too. Things like benefits, the length of the workweek, considerations for parents, and others have all been put forth as the real difference-makers when trying to attract the MVPs of the workforce.
Despite all of this, employees care about money most. So aside from giving it to them, why not also seize the opportunity to get the most from it? Gain a reputation as the company that helps its staff prepare for their financial futures and you’ll soon have prospects beating down your door.
A study done by the Society for Human Resources in 2014 backed this claim. It found that employees are looking to their employers for assistance with managing their finances.
2. The Lack of Understanding Is Affecting Your Bottom Line
Despite that last section, it may still be tempting to think of employee education as little more than a nice frill to add to job posts.
Yet the truth is that, if your employees aren’t good with their money, it’s going to come back to affect how much of it they’re able to make for your company.
According to a Financial Education for Today’s Workforce study, 80% of workers reported that their financial issues had at least some impact on their job performance. Many said the impact was extreme.
It would seem these employees aren’t exaggerating, either. For every 100 people on a company’s staff, the business loses 22.5 days annually because of financial stress. Employee education carries serious ROI.
3. Your Competitors Are Doing It
If not now, they will be soon.
Just two years ago, a survey of 250 large companies found that 90% were planning to introduce financial wellness programs for their employees.
Don’t let your competitors beat you to the chase. The sooner you start, the sooner you’ll be able to level the playing field or even get the jump on those other companies.
Begin Investing in Employee Education
At Mooney Lyons, we know all about employee education. So if you’re now convinced that you should be teaching your staff about personal finances, we can help. Contact us today and let’s talk about how we can improve how your workers handle money.
The opinions voiced in this material are for general information only are are not intended to provide specific advice or recommendations for any individual.