"Most people struggle to manage their money. As a result, 77 percent of Americans are living from paycheck to paycheck." - CareerBuilder, 2010
How Does This Affect the Workplace?
Employees with money problems may be absent more often, spend work hours on the telephone resolving financial concerns, and be more easily distracted than other employees. Consider these statistics:
"Employees think basic workplace financial education is important or extremely important to the overall level of productivity in their organization (83.3% compared to 70% in 2010). Moreover, 94% cited employee financial literacy as important in reducing vulnerability to major economic crises."
-- Personal Finance Employee Education Foundation
"Money (75%), work (70%) and the economy (67%) continue to be the most frequently cited causes of stress for Americans."
- American Psychological Association
"Those who report high levels of debt stress suffer from a range of stress-related illnesses including ulcers, migraines, back pain, anxiety, depression, and heart attacks."
"One in five adults worries about debt most or all of the time."
--AP-GfK Poll, July 2011
Why Provide Financial Literacy Resources in the Workplace?
According to a MetLife’s Study of Annual Benefits Trends, nearly two out of three Americans feel their ability to achieve the American dream is no longer within their control and those financial worries can lead to stress on the job. The study found employers are aware that a distracted, stressed workforce – one that is preoccupied by money worries – is less likely to perform at desired levels.
Consider the effects of personal financial stress on workplace productivity:
- On-the-job errors
- Problems with co-worker and/or supervisor
- Long lunch breaks
- Taken paycheck advance
- Borrowed money from co-worker
- Frequent personal telephone calls
- Poor attitude
- Unenthusiastic about work
Now, more than ever, employers have the opportunity to help employees become more knowledgeable and take control of their personal finances. The MetLife study found employees admit that they need and welcome this support. Only a third (33%) of employees strongly agree that they are in control of their finances and 72% of employees expressed interest in various financial education opportunities in the workplace to address current, long-term financial security, or protection against the financial impact of an unforeseen event.
Read here for more information:
Employees clamoring for basic workplace financial education
Financial Education - Stress = Improved Productivity
Employers should offer workers financial education
Financial literacy tied to productivity
Proof that Workplace Financial Education Works