Millennials are now the largest generation in the current workforce. As a result, workplace trends are changing, such as the growing popularity of remote work. However, one pattern that affects all generations, especially millennials, is the lack of financial literacy.
Maryville University reveals in an article about financial literacy among millennials, that “almost 30 percent of millennials have overdrawn their checking accounts, demonstrating financial fragility, and more than 80 percent have one or more forms of long-term debt.” Financial literacy has become such a problem that employers have taken it upon themselves to provide financial education to their employees. Financial education is not only beneficial to your employees, but it also carries advantages to your company as well. Providing financial training for your employees can increase performance and productivity.
Financial distress can weigh on an employee, severely affecting their work efficiency. It will benefit an employer greatly to provide financial education to their employees. But how can you offer it in a way that is cost-effective, yet impactful? Read below for some ways an employer can help their employees become more financially literate — increasing employee productivity, performance, and overall well-being.
Guest Speaking
If you aren’t comfortable speaking on financial literacy, consider hiring an expert guest speaker for your employees. A financial guest speaker can illuminate where many financial problems come from, as well as offer solutions on how to fix them. For instance, a financial guest speaker can clarify how to buy a home with student debt for millennials, the difference between renting or buying a home, even understanding interest rate concepts such as APR.
Many people don’t know what is best for them when choosing mortgages or optimal interest rates that are best for them. This financial literacy can relieve an employee’s economic concerns, taking their mind off worrying about their finances and leaving more room for their work duties. A guest speaker can be a one-time contribution, an annual training coach, or the initial step to a bigger series of financial education programs for your employees.
Personal Finance Counseling
For an in-depth consultation, think about recruiting a workplace counselor who can provide financial support for your employees. In many cases, it is prudent for an employer not to get involved with their employees’ personal financial life, however, a personal financial counselor can treat each employee, tailoring their advice and education according to the individual. You may have many different employees, and these employees come from many different financial backgrounds.
A financial counselor can assess each employees’ financial pains and troubles, suggest and implement strategies that are right for them, and get them into an economically comfortable situation. Providing a workplace counselor can be a safe space for employees to talk about their financial problems truthfully. Often, they can come out with a more positive outlook about their financial future and how their job factors into it. An employee who is financially secure will now be able to focus and be energized for other things — such as work productivity.
Online Tools And Apps
In many instances, it helps to see your progress and where you can improve your finances. Provide your employees not only with the steps they need to get their finances on track, but with multiple ways to keep track of their progress. A multitude of online tools and apps are available for budgeting and saving, investing, credit monitoring, and many more financial operations.
These tools and apps can help your employees make informed decisions while tracking their money. A financial speaker or counselor can’t be with your employees 24/7, however, an app can. Apps and tools can work alongside counseling for a comprehensive and proactive approach to an employees’ finances. Whether an employee was told they need to start saving, cut spending, or re-examine their mortgage rate, and an app can assist in these affairs. Being able to see these tools and apps break down and crunch the numbers can simplify complicated finances that can sometimes get chaotic and out of hand.
A financially secure employee will be less likely to ask for an advance on their paycheck or hardship withdrawal on the company 401(k). You can expect different outcomes, such as an increase in worker productivity, performance, and retention. Furthermore, providing financial education for your employees can convey that you, as an employer, understand and care about your staff members. Your employees will greatly appreciate this help, making your work environment amicable and productive.
Your motivation for providing financial education to your employees shouldn’t be purely based on what they can do for you. Give your employees a chance to get a leg up on life. Take the information above to get your employees’ financials back on track, and overall increase their well-being. Although, their increase in productivity and eagerness to stay with your company is a bonus for you, too!
