Providing your employees with financial education makes good business sense. If your staff are spending a lot of time worrying about their cash flow and how they will manage to pay their bills, they will be much less focused on their work – which can have huge implications for a business.
There are said to be more than 8 million people in the UK with problem debt; so if you are employing a large number of staff, you can bet that a large percentage have money worries. As you can imagine, this is not the best recipe for success for your business. When you provide staff with financial education, it not only benefits them as an individual, but it can also be good for business.
It is only natural that money worries can cause employees to lose focus on their work, especially if they are experiencing particularly difficult times. If something stressful is going on in your life, it is very difficult to focus on anything but the problem and this is particularly prevalent in the workplace. The Society for Human Resource Management recently undertook a survey and the responses on this subject were interesting. The survey revealed that as many as 83% of HR professionals felt that financial problems were affecting their staff and causing issues with performance. Out of those surveyed, 26% actually recognised the effects of money problems on productivity within their organisation. The University of Warwick conducted research which showed that employees who are happy are more productive – by as much as 12%. Financial problems do not lead to happiness, in fact quite the opposite, and this can have a knock-on effect on productivity.
Stressed out, worried employees are much more likely to be off work, which can cause problems for a business. High levels of absenteeism can not only reduce work output, but it can also result in more time and resources spent on managing the absences. In the same survey conducted by The Society of Human Resource Management, 24% of respondents felt that money problems were a cause of some of the absence levels within the organisation.
Employees are more likely to stick with an employer who they feel values them and who offers them more than just financial benefits but also the help to understand what you offer. When you provide staff with financial knowledge, you are not only offering a service which they will appreciate, but it can also give them the opportunity to learn more about the financial benefits they receive or could be receiving now – in their job. If your employees feel as though you prioritise their welfare and well-being, they’ll be more content within the organisation and feel greater loyalty in return.