Employees with more financial education skills are happier and more productive.

In today’s business world, companies that want to maintain a competitive edge have realized that employee well-being extends beyond traditional benefits. Financial wellness is emerging as an important part of employee satisfaction and productivity. In this article, we explore how providing financial education can positively influence retention rates and enhance overall workforce performance.

Addressing the Financial Literacy Crisis

Financial literacy is essential for making informed decisions about retirement plans, insurance enrollment and investment options. Unfortunately, Americans across all generations struggle with financial literacy. According to the annual P-FIN Index report, America's financial literacy rates are falling. Traditional education methods often fall short, with only about 25% of students receiving personal finance courses before high school graduation. Employers can bridge this gap by offering financial education programs¹.

Boosting Retention

Employees who receive financial education are more likely to stay with their current employer. Offering financial wellness benefits contributes to longer job tenures. Developing engaging and productive financial education programs is essential. Employees who feel supported in managing their finances become more loyal to the organization².

Improving Job Satisfaction and Productivity

Financial stress affects job performance. By providing financial literacy training, companies empower employees to make better financial decisions. When employees understand concepts like budgeting, debt management and investment strategies, they can focus more on their work responsibilities. Improved job satisfaction leads to increased productivity, benefiting both employees and employers¹.

Investing in financial education pays dividends in terms of employee retention and productivity. Companies that prioritize financial wellness create a workforce that is financially savvy and less burdened by stress from financial worries.

If you’re interested in providing financial education to your workforce, Cadence Bank can help. By becoming a participating Bank@Work employer, Cadence can offer financial education opportunities.

Sources:

1. https://www.forbes.com/sites/forbesbusinesscouncil/2023/08/22/reimagining-hr-financial-education-for-employees/
2. https://www.forbes.com/sites/forbescoachescouncil/2022/10/26/want-to-boost-employee-engagement-and-retention-address-financial-stressors/
3. https://www.forbes.com/sites/forbeshumanresourcescouncil/2022/06/30/using-financial-wellness-offerings-to-ramp-up-employee-retention/
4. https://www.cnbc.com/2023/06/04/the-top-stress-for-workers-is-finances-including-100000-jobs.html

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.