Addressing the employee financial literacy gap. Here’s how a lack of financial literacy can affect your employees and what you can do to help solve the problem.
Only one-third of Americans have a solid understanding of interest rates, mortgage rates, and financial risk, according to the Financial Industry Regulatory Authority. This measure of financial literacy has fallen 19 percent over the past decade and is estimated to have cost Americans more than $415 billion in 2020 alone.
The impact of employee financial illiteracy
As financial literacy has become less prevalent amongst employees, the effects have been felt from the workplace to the home. This can take a toll on an employee’s mental health and cause a burden they carry with them to work. According to PWC’s employee financial wellness survey, 56% of employees are stressed about their personal finances. This dearth of knowledge not only costs individuals but businesses as well. Employees that are financially stressed lose around a month of productive work days a year, as per Neighborhood Trust.
The impact of a financially stressed employee can branch out to all members of the office. Workers that are missing chunks of time due to stress can delay projects and cause additional stress on other employees. Providing employees with a way to achieve financial literacy can help alleviate these concerns. According to SHRM, financially literate employees are less stressed and more focused. This results in higher productivity by way of less absenteeism and lower healthcare costs for the employer.
How to help address the employee financial literacy gap
One of the easiest ways to assist employees on their journey to financial literacy is by providing a financial wellness platform in their benefits package. Not only do programs help workers, but a thorough financial wellness benefit can also help employers in hiring. 84% of employers said that offering a financial wellness program assists in employee retention and 8 of 10 said that a quality program helps attract higher quality employees, according to Bank of America.
Providing a comprehensive financial wellness program is a signal that an employer understands the problems of their employees and works to solve them. ¾ of financially stressed employees are more attracted to a job that cares about their financial well-being. Also, assisting employees can put money back into the pocket of employers. As per the ASPPA (American Society of Pension Professionals and Actuaries), 80% of employers said that financial wellness programs result in increased workplace productivity.
Find your employee financial literacy solution with Best Money Moves.
Best Money Moves is a mobile-first financial wellness solution designed to help employees dial down their financial stress and meet their most top-of-mind financial goals. With budgeting tools and personalized money coaching, users can easily receive compressive financial advice right from their phones.
Best Money Moves is designed to guide employees through the most difficult financial times and topics. Our dedicated resources, partner offerings and 700+ article library make Best Money Moves a leading benefit in bettering employee financial wellness.
To learn more about Best Money Moves Financial Wellness Platform, let’s schedule a call. Contact us and we’ll reach out to you soon.