Financial literacy is the ability to understand money and make informed decisions about how to use it, and more employers are beginning to recognize the benefits of offering financial literacy education programs to employees.
According to a Harris Interactive survey, in 2013, 40 percent of adults gave themselves a grade of C, D or F on their knowledge of personal finance. This lack of knowledge can create stress that spills over into the workplace. Personal finance issues not only increase employee anxiety levels, but may also impact productivity and morale.
SHRM, in collaboration with Elevate, conducted a survey on employee financial stress and found that 61 percent of HR professionals would describe their employees’ financial health as no better than fair.
And while a financial literacy program is an important component to any workplace wellness strategy, employers shouldn’t take a “one-size-fits-all” approach. It’s important to offer a variety of plans and resources. Financial literacy programs can include courses that range from debt and credit management to advice on investments and retirement planning.
Ultimately, a person’s finances are very personal and confidential, and an employer should provide useful information while respecting employees’ privacy.
How is your organization encouraging and supporting financial literacy for employees?
Please join @weknownext at 3 p.m. ET on July 2 for #Nextchat with special guest, SHRM Manager of Compensation and Benefits, Bruce Elliott (@bhelliott04). We’ll chat about how organizations are planning and delivering effective financial literacy programs to their employees.
Q1. What steps did your organization take to plan and create a financial literacy program for employees?
Q2. What kinds of financial literacy courses and classes does your organization offer employees?
Q3. How do you deliver financial literacy training to employees? Video, lunch and learn, webinars? Which are the most effective?
Q4. Which financial literacy classes and delivery methods have you found to be most popular with employees?
Q5. How can employers encourage greater employee participation in your financial literacy programs?
Q6. How is the financial literacy program that you offer employees showing an ROI and/or other benefits for your organization?
Q7. If you do not have a financial literacy program in your organization, what’s holding you back?
Q8. Where can employers go for resources to help them create an effective financial literacy program?