A just-released Purchasing Power special report discusses the lack of money management skills and knowledge among employees which leads to financial stress and affects their workplace productivity. It also outlines the steps employers can take to improve the financial literacy of their employees, including some specific voluntary benefits.
The report illustrates common financial struggles – such as having trouble meeting monthly household expenses and not having $2,000 in emergency savings for unexpected expenses – and the surprising percentage of employees who are facing them. And the reason why employees could be having financial issues points to a lack of financial literacy which is reflected in the statistics of how many workers don’t have a planned monthly budget; don’t put anything into savings each month; and run short on funds then use credit cards to pay household expenses (such as phone, cable, utilities, etc.).
Companies can incorporate financial wellness tools into their employee benefit package through various ways including online financial education resources, taking advantage of value-add resources from their current benefit providers; and non-profit financial counseling services. Programs that help employees with their short-term financial needs including employee purchase programs, discount programs and short-term loans are discussed.
Read the full report, “An Employee Crisis: Financial Literacy,” to see the full picture of the percentage of employees facing these financial struggles.