LEARN Money Where You EARN Money - The Need for Personal Financial Wellness in the Workplace
Personal financial empowerment should be a cornerstone of any workplace wellness program. The Cambridge Human Resource Group states that a lack of financial education for employees is “the most critical unaddressed workplace issue.” The Met Life report 'Financial Education—An Essential Component of Your Wellness Strategy', states that, “The addition of a financial wellness component can offer significant advantages for a company’s bottom line and increase appreciation for the benefits they already offer.”
The current economy has many people worried about their personal finances. As USA Today recently reported, “Financial stress is having an impact on the workplace, potentially draining productivity and increasing emotional stress on the job.” This correlates directly with reduced productivity, increased absenteeism, and low morale.
Financial stress can lead to lower satisfaction with pay, lower commitment levels, higher risk of employee theft, unhealthy coping behaviors (such as alcohol and drug use) that spill over into the workplace, inevitably causing time being spent on personal financial issues during work hours. Bottom line: financial strain heavily impacts employees—both personally and in the workplace - as well as negatively affecting a company's bottom line.
Proactively addressing the financial concerns and questions of employees can improve their sense of well-being, thereby transforming the work environment over time. A comprehensive employee financial education program also helps organizations to comply with ERISA (The Employee Retirement Income Security Act) and Department of Labor regulations.