Businesses that provide employees with financial literacy training can improve workforce wellbeing and boost company productivity.
Recent years have put the spotlight on the impact managers and the workplace have on employee physical and mental health. It therefore makes sense that as the biggest global stressor, money – and learning how to manage it – should be part of a holistic health offering to staffers.
What is employee financial literacy and why does it matter to businesses?
From budgeting, debt management and retirement planning through to saving and investments, financial literacy is the ability to make informed decisions about money. However, as a topic rarely taught in classrooms, financial understanding can fall to the individual to learn for themselves. This is where businesses can step in.
Encouraging your workforce to be financially literate has several benefits for employers. Money worries can impact employee wellbeing, which has a knock-on effect for productivity levels. Knowing how to best invest or manage debt can decrease stress and improve mood, resulting in a happier, healthier team.
In addition to wellbeing, financial literacy can boost employee satisfaction, loyalty, and longevity with your company. Businesses that prioritise employee financial literacy are less likely to lose talent to competitors.
How can your business support employee financial literacy?
There are several easy ways you can help increase financial literacy for your workforce.
- Onboarding – Integrate financial literacy as part of your employee onboarding process. This sends a clear message about your company’s commitment to supporting employee financial wellbeing from the beginning of their journey with your organisation.
- Education – Online or in-person training and written resources can help to educate and inform on a wide-range of financial topics that will help people feel more confident around conversations about cash.
- Ongoing support – Providing staff with financial advice services or coaching can help increase financial literacy. Consider bringing an external provider in rather than run sessions yourself – some employees might feel uncomfortable discussing money with their managers.
- Guest Speakers and Experts – Invite financial experts, advisors, and guest speakers to share their insights and knowledge with your employees. These sessions can provide a fresh perspective on financial matters and offer real-world experiences that resonate with your workforce.
- Tools and Apps – Introduce user-friendly budgeting apps, investment calculators, and debt management tools. These interactive tools can help employees visualise their financial goals, track spending patterns and make informed decisions about saving and investing.
- Create a financial health support group – Having an open meeting once a month where people can ask questions, share knowledge, or simply listen to the experience of colleagues is a social way of normalising the topic of finances in the office, while providing practical support.
Fostering financial literacy among employees is a strategic investment that yields multiple benefits for both individuals and businesses.
Whether you’re seeking personalised financial advice or tools to empower your employees, we are here to provide guidance and support.