Benefits to Employers
Running a financial literacy program can:
- make your workplace more attractive to employees and support recruitment and retention strategies
- improve commitment and reduce absenteeism of workers
- improve productivity by reducing employee stress about personal finances
- reduce the query load on human resources staff, and requests for pay advances, making people better able to manage their own finances
- improve employee understanding and use of benefits such as salary sacrifice and superannuation
- improve employee understanding of financial imperatives facing the organisation
- support your mature aged worker strategy, helping people change their working commitments (whether that is moving to part time, different arrangements, or retiring) in a way that suits them and you.
Benefits to Employees
Employees can benefit from financial literacy through:
- increased levels of financial wellness
- improved financial knowledge, behaviour and attitudes
- increased savings, both in general and for retirement
- increased employee and employee spouses' contributions to retirement plans
- improved levels of retirement confidence
- increased satisfaction with the company, their career, and their pay.
Want to give it a try? Find out about what's in a financial literacy education program
Further reading
Hira, T.K.and Loibla, C, Understanding the impact of employer-provided financial education on workplace satisfaction, Journal of Consumer Affairs, Vol. 39, No. 1, Summer 2005
Joo, S., Workplace financial education: If you provide it who will come?, Journal of Personal Finance, Vol 1, Issue 1, 2002
Kim, J and Garman, E. Thomas, Financial education and advice changes worker attitudes and behaviors, Journal of Compensation and Benefits, September/October 2003