A PwC Financial Wellness survey found that finances are the largest source of stress for 54% of people. Since stressed people are less productive at work, building financial literacy for employees is important to your organization’s success.
What’s more, when you factor in that just 33% of the global population is financially literate according to the World Economic Forum, the stress levels really aren’t surprising.
Part of the problem is that many of us don’t learn financial literacy at school or from family members. Which means if we don’t actively seek to learn more about how to manage our finances, we never will.
But it isn’t that simple.
The sheer amount of information available around financial literacy can be overwhelming. This can cause people to end up even more confused than they were to begin with.
While it isn’t an employer’s job to offer financial literacy for employees, it can be an opportunity to support them in a way that drives business results. Consider it a perk that sets them up for a happier, more stable future.
It’s also a way to show employees that you value them. And that you understand the importance of education and financial literacy for employees—even if you’re not a financial organization.
Plus, it can reinforce or create a culture of learning, inspiring employees to think differently and explore new skills and topics.
And, according to Harvard Business Review, when employees are financially literate, it can help them at work to:
- Make business decisions
- Have a better understanding of how expenses impact a company’s profit and loss and balance sheet
- Design budgets
- Understand how their actions impact the business, and how they can improve the organization’s financial health
It’s little things like these that can add up to a more sound, stable, organization.
How to build financial literacy for employees in your organization
So, we’ve looked at why financial literacy for employees is important. Now let’s explore how you can build it across your organization:
Set up an employee group to talk money
When you have an employee group designed specifically for people to talk finances, it creates a safe space for discussion. So team members can share what’s going on with them, how they feel, and ask questions.
It creates somewhere people feel comfortable talking about money. This helps break down barriers when money is still seen as a taboo discussion topic.
Need help managing your employee groups? Or want to get more out of them? Workrowd has your back!
Get in touch to discover how we can help and book your free demo today.
Organize a training day
A one-off training session that any team member can sign up for is a great way to build financial literacy for employees. Sessions can cover everything from basic concepts to more advanced money management.
It gets employees in the mindset of thinking about their finances without distractions from their everyday work.
Organize a lunch and learn
On the other hand, a full day might be overwhelming for some. A shorter session, or a lunch and learn, gives them the option to learn without bombarding them with tons of information in a short space of time.
If it’s a series of sessions around financial literacy for employees, they can pick just the topics that are relevant or interesting to them. This ensures they don’t waste their time but still get to learn.
Bring in an expert
Getting a financial advisor or certified financial planner to come in and talk about financial literacy for employees allows them to talk to someone objective and experienced.
Ideally you want someone who’s neutral and doesn’t promote their own services or tools. That can lead to slippery slopes like encouraging employees to use an investment platform when they’re not ready.
Someone more neutral can outline the good and bad of all options and strategies. This helps employees make more informed decisions. They can also answer employees’ questions without a biased point of view, offering them support without a sales angle.
Recommend resources like books or podcasts
Everyone learns differently. Books, podcasts, video training sessions, or even vlogs can help improve financial literacy for employees on their own schedule.
They could then discuss the book or podcast’s content in the financial literacy employee group with their colleagues.
Here are a couple of books to get you started:
I Will Teach You To Be Rich – Ramit Sethi
Ramit approaches finance with humor, writing in plain English and laying things out in a clear, easy-to-understand way. He also has versions of the book adapted for different audiences by country.
Girls Just Wanna Have Funds – Anna-Sophie Hartvigsen, Camilla Falkenberg and Emma Due Bitz
Women earn, on average, 23% less than men. This equates to almost $400,000 dollars lost over the course of their lifetimes. This book looks at how managing money is different for women and how they can make the most of their funds.
Ask employees
When you understand how employees think and learn, you can better adapt to their needs.
The best way to learn what they need from you is to ask them.
Consider sending an employee survey asking about financial literacy for employees; what they know, what they’d like to learn, and how they learn best. That then ensures you can tailor the training to them. Rather than presenting them with something that isn’t the right fit for the people in your organization.
If you create a learning module that isn’t the right fit for them, they’re less likely to use it. At that point, you’ll have wasted your investment.
Conclusion
Investing in financial literacy for employees doesn’t have to be expensive. It can be a benefit that helps your people grow at work and beyond. It can reduce their stress levels and therefore make them more productive at work.
Their financial literacy levels can also impact their decision-making skills and, in the process, your budget.
Investing in their skills now will pay you (and them) dividends in the future.
Ready to level up and deliver more when it comes to financial literacy for employees? Workrowd has the tools you need.
Visit us online to learn how our all-in-one platform makes it easy to launch and manage employee groups, track the impact of training sessions, and deliver a world-class employee experience with less stress.
Questions? Feel free to email us directly at hello@workrowd.com.
