| Money: The more you make, the more it takes, or | | | | improvements in their financial wellness, is more than |
| so it seems. This statement applies to employers as | | | | $400 per employee (e.g., fewer absences, less time |
| well as employees. Doing more with less, is both an | | | | dealing with financial matters, and increases in |
| employer and employee issue. Many businesses are | | | | productivity).The NIPFEE estimates that the potential |
| unable to afford pay raises to offset the rising cost | | | | return on investment for employers who provide |
| of living. Workers are drowning in debt more than | | | | workplace financial education is at least 300 percent. |
| ever before. As we are aware, in our society, some | | | | Some organizations have used financial education to |
| debt may be necessary. Too much debt, usually | | | | help recruit and train their employees. This type of |
| attributed to lack of money management skills, is | | | | company-sponsored, employee education also fulfills |
| easy to address and the most costly for employers | | | | the requirement from the Department of Labor for |
| to ignore. Money management education, when | | | | employers offering defined-contribution pension plans, |
| offered to employees by their employer, can be one | | | | such as the 401(k). |
| of the best investments employers can make in their | | | | One popular financial education program* offered by |
| business. | | | | companies like General Motors, US Steel, Exxon/Mobil, |
| It is a fact that more than one-third of all employees | | | | Chrysler Corporation, Xerox and Ernst & Young, |
| are stressed about their financial issues. About 20 | | | | teaches employees how to give themselves a 35% |
| percent are so anxious that their job productivity is | | | | raise by eliminating their personal debt. This type of |
| negatively impacted. In some workplaces, due to | | | | raise does not require a company to touch a dime of |
| income inadequacy, this figure is as high as 40 to 50 | | | | its payroll and conveys a message of caring to |
| percent. Other studies show that 90% of employees | | | | employees. These employees then, become more |
| are dissatisfied with their financial wellness, 75% are | | | | engaged and more productive in their work. |
| insecure about retirement and 50% hold a part-time | | | | Employees learn how to reach their financial goals |
| job. Nearly a third of these employees waste 20 | | | | using the money they make now. They have less |
| hours each month, dealing with money-matters while | | | | stress and feel less pressure to make more money. |
| on-the-job. These employees are less productive and | | | | Besides being a sound investment in employees, a |
| absent from work more often. And those employees | | | | quality financial education program would benefit your |
| with serious money problems are more likely to | | | | business for years to come. Workers become more |
| suffer from health and family problems, further | | | | tolerant of budget cuts that prevent expected |
| increasing the cost of business. | | | | increases in pay. Fewer employees work second jobs |
| Since the declaration of the bankruptcy of the Enron | | | | or seek higher paying jobs at the expense of their |
| Corporation, many policy makers and other leaders | | | | employer. Employees who are more cost-conscious |
| have called for a greater focus on financial education. | | | | at home should be more cost-conscious at work. |
| Globally, more company principals and managers | | | | Unfortunately, most employers ignore workers who |
| agree that money management education in the | | | | have personal money management problems because |
| workplace has become more essential than ever. For | | | | they do not realize the high cost of doing so. The |
| example, Richard Hiller, Vice President of the Western | | | | reality is that workers' personal financial management |
| Division of TIAA-CREF, while testifying before a | | | | problems cost employers a lot of money. |
| House Committee on Education and the Workforce, | | | | The bottom line for most companies is that they help |
| contended that financial education should be made | | | | to change their individual and collective financial future. |
| more available. | | | | The challenge of making the most of what you have |
| Company-sponsored financial education programs can | | | | is just as important to your employees as it is to |
| benefit all employees, regardless of their financial | | | | your business. By choosing to offer your employees |
| status. In fact, the National Institute for Personal | | | | a solid financial education program, you not only |
| Finance Employee Education has calculated that the | | | | enable them to better manage their lives, you |
| first-year return on investment in workplace financial | | | | empower them to better manage the future of your |
| education, even for employees who make slight | | | | business. Their future is your future. |