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Although finances are seen as a personal issue, studies show that financially stressed employees often bring that stress to the job. As an employer, are you aware that it is the employees’ hard work and dedication that ‘ultimately’ drives in the profits and improves the wellbeing of a company? How do you therefore ensure that productivity of your organisation is at its peak?

One of the most commonly cited reasons for stress among employees is financial worry. A majority of them suffer from money-related problems as their financial management skills are not the best. The current economic crisis has left more people (mostly employees) feeling vulnerable simply for being unprepared to deal with financial crisis.

Households have continued to struggle financially which means that your employees may be stressed regardless of how ‘professionally’ they act when we see them at work.

Companies see real benefits to their bottom line when they teach and promote company-wide financial literacy. Having financially competent employees who are happy and perform their best will benefit you in some of the following ways:

• Increase in Productivity & Satisfaction

If employees are constantly weighed down by stress and anxiety, they will be inpensivemood which will prevent them from delivering their best. Average employees waste several hours in a month worrying about their finances while at work.Even the most talented employees won’t be useful under stress.

Financial stress is one of the main reasons why people lose their mental stability – they live in anxiety. But if their finances are sorted, they are satisfied, more relaxed and can focus more on the job at hand.They develop skills to manage their paychecks and plan better for the future.

• High Employee Retention Rate

Do you know how damaging losing a capable employee (who you trained over the years) can be to your organisation? An employee who is financially stressed would quickly change his job and opt for a new employer even if the salary is just marginally higher.

But if the employee is financially secured, he or she will hold on to the organisation and definitely will not quit the job just for the bait of a few extra pay.

• Good reputation for the company

An organisation that prioritises the importance of financial literacy gives off the impression of being a good employer. This increases the reputation of the organisation and works in their favour. People identify you as an employer who thinks about their employees.

Your reputation increases in the industry and the best candidates will want to kill themselves to get into your company. Employees that are financial well will also contribute to their own technical growth which increases competency.

• Financial gains

What about economic gains to the organisation? Financial stress impacts the health of your employees and becomes history with this financial management plan in place.Employees are able to cope with arising stress around them thereby elimination lost productive time.

The reality is that employees who aren’t distracted by their personal money matters will add to the revenue generation of the organisation as a result of increase productivity. And allmentioned benefits are all financially fruitful for the business owner especially in the long run.

When it comes to money, most people are quite conventional and still prefer to be inconspicuous. The reluctance to discuss their financial matters and the urge to manage it all by themselves has led to financial stress experienced by most of your employees. The good news is Financial education doesn’t have to be expensive; you don’t even need to make it part of your headache.

A good way to do this is to integrate some financial literacy systems into the regular work to inculcate the basics of financial management among your employees. Some of the most popular possibilities include:

1) Have In-house Financial Advisor –

You can have a financial expert who can offer his or her advice to your employees engaged (either as a Consultant or an employee), to be available for guidance whenever needed.

Aqualified co-worker can be the expert as this makes the employees feel more comfortable discussing personal issues with them. Iconsider a better option than to have a complete stranger serve as the expert.

2) Arrange for Teleconferencing –

Set up a teleconferencing facility. This means holding an interactive communication by people remote from one another through telecommunication devices (such as telephones or computer terminals).

You tie up with a financial education firm (or a Financial Advisor) and offer their phone number to your employees. Your employees can call the number and speak to the advisors/experts and get the financial solution they need.

3) Organize Office Workshops –

Employers can arrange for a financial literacy workshop in the office premises during office hours. Have expert trainers come down to your office and conduct a fixed-duration workshop. It can be done virtually as well.

Plan it to happen more frequently depending on theobjectivesthat needs to be achieved. Participation will become seamless if they are integrated into the work system.

4) Online Courses& Academy –

Many offices would opt for the very popular option of online financial courses. This is to allow employees the opportunity to study at their own pace. There are many academies that offer excellent financial literacy programs for employees through these online mediums.

This medium can present a level of privacy which isseen by many as desirable in personal finance matters.It should be able to address their specific, rather than assumed needs if it is done real-time.

5) KeepFinancial Education Books in Library –

Have a library of financial literacy books set up for your employees where they can spend some of the leisure time. Incentivize use of the resources by dangling a juicy carrot to motivate them to learn on their own. It can serve as a good clarification point to knowledge gained through the other mediums.

Bottom Line

Workplace financial literacy programs are becoming the new model, as employers recognize these benefits and the role they can play in their employees’ financial health.Financial education can help people make better investments, accumulate more wealth, and have a higher inclination to plan for their future.

The satisfaction that comes from such programs (especially when put in place by employers) creates the satisfaction that impacts the workplace positively in many ways as seen.

Remember, the ultimate goal is to achieve financial security and wellbeing. So don’t just allow them to acquire the knowledge and skills needed to effectively manage their financial resources without putting them into action.Providethem with all the aid they will require and soon you will have a group of financially sound employees who would deliver their best performance at work.