By Katarzyna Jaszczuk, financial education trainer, Sysco Polska
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Financial stress is a major concern for many employees, impacting their focus, productivity, and overall well-being. Financial stress is a silent thief, lurking in the shadows and stealing focus, productivity, and overall well-being from employees. Studies reveal that a significant portion of the workforce grapples with financial anxiety.

Financial stress can cause employees to be less focused and therefore less productive at work, as they worry about money instead of their tasks. Financial strain can lead to increased absenteeism or presenteeism (where employees are physically present but not mentally engaged due to stress). Financial worries can contribute to mental and physical health problems, further impacting an employee’s ability to work effectively. Stressed employees may have strained relationships with colleagues and be more likely to search for a new job, increasing turnover costs for employers. Financial insecurity can take a toll on morale, leading to decreased motivation and engagement among employees.

Although it might seem that increasing your salary is the fastest way to reduce the stress level, the effects are short-lived; if you lack the ability to consciously manage your personal finances, the stress returns.

Employers who are aware of the needs of employees and the fact that the increase in financial management skills is not proportional to the amount of funds they have, begin to offer financial education to their employees.

Employers by offering financial education programmes, workplaces can address these needs and empower their employees to make informed financial decisions and increase long-term financial stability.

Understanding employee needs

The first step is to identify the financial concerns of your employees. Conduct surveys or hold focus groups to understand if they’re struggling with any of the following:

  • Psychological aspects of money management
  • Budgeting
  • Managing debt
  • Saving for emergencies and long-term goals (like a house or retirement)
  • Understanding employee benefits (health insurance, retirement plans)
  • Making wise investment choices

Once you know your employees’ needs, you can design programmes that resonate with them. Here are some options to consider:

  • Lunch-&-learn workshops: Host short or longer, informative sessions on various financial topics, from budgeting basics to navigating retirement plans.
  • Online resources: Provide access to credible online resources, articles, and financial calculators employees can use at their own pace.
  • Financial wellness webinars: Partner with financial advisors or institutions to offer live webinars on specific financial challenges.
  • One-on-one financial counselling: Consider offering limited financial counselling sessions with a qualified professional for employees seeking more personalized guidance.

Benefits for employees:

Financial education programmes offer a multitude of benefits for employees, including:

  • Reduced financial stress: Understanding personal finances empowers employees to manage their money effectively, leading to less financial anxiety.
  • Improved financial decisions: Gaining financial literacy allows employees to make informed choices about budgeting, saving, and investing.
  • Increased productivity: When employees are less stressed about their finances, they can focus more on their work, leading to increased productivity and engagement. This translates to a more efficient and thriving workplace
  • Greater employee satisfaction: Investing in employees’ financial well-being shows you care, fostering loyalty and satisfaction.

Benefits for the employer:

  • Reduced absenteeism: By promoting financial well-being, companies can expect a decrease in absenteeism due to stress-related illnesses. This leads to improved team continuity and project completion rates.
  • Enhanced employee retention: Employees who feel valued and supported by their company’s financial wellness initiatives are more likely to stay. This reduces turnover costs and fosters a culture of loyalty and long-term commitment.
  • Improved employer brand: Offering personal-finance management tools showcases a company’s genuine concern for its employees’ well-being. This can attract top talent and enhance the company’s reputation as a progressive and caring employer.

Investing in financial education programmes

Financial literacy programmes is not just a feel-good practice; it’s a strategic investment with a high return on investment (ROI) for companies. Consider these points:

  • Relatively low cost: there are a variety tools available, with options catering to different budgets. Many financial institutions even offer free budgeting and tracking features alongside traditional banking services.
  • Scalable solutions: Financial education programs can be implemented at any scale, making them suitable for companies of all sizes.
  • Measurable impact: The success of these programs can be tracked through metrics like employee engagement surveys, absenteeism rates, and even participation in company-sponsored retirement plans.

Financial stress is a real and pervasive issue impacting employees and businesses alike. However, by offering personal finance management tools and educational resources, companies can empower their workforce to achieve financial wellness. This, in turn, fosters a more productive, engaged, and loyal employee base, ultimately contributing to the company’s success. Investing in financial fitness for employees is not just the right thing to do; it’s a smart business decision.

Katarzyna Jaszczuk is a financial educator and trainer, author of educational materials, initiator and coordinator of adult education projects (lifelong learning) with ten years of experience in conducting many training sessions. She tirelessly promotes the topic of financial and consumer intelligence, reasonable personal finances management, the labour market and professional activation. She is always looking for new solutions and she is an author of social innovations, online courses, educational games and training programmes in the business and NGO sectors. She makes sure that her work has a positive impact on the quality of life of other people.