Effects of Financial Literacy on Profitability
Feature Points
Study-driven report on the effects of a financial wellness program on workplace productivity and profitability.
A closer look at the effects of low financial well-being on absenteeism & productivity and how it affects a company’s profitability.
Description
The Great Recession of 2008 left many feeling mentally distressed and financially insecure. Not since the Great Depression have Americans faced their own financial mortality. Over 6.6 million jobs were lost in the first 10 months of the recession, leaving many hardworking Americans scrambling with their finances. According to a 2012 study conducted by the Financial Industry Regulatory Authority (FINRA), 60% of American households don’t have at least three months of savings at hand, while the American Psychological Association (APA) identified “money” as the predominant cause of stress among Americans. Everyday millions of people stress out about whether or not they will have enough money to pay next month’s rent, all while working long hours for an employer that doesn’t know how this negatively affects his company’s profitability and productivity.
This report is intended to serve as a resource for employers who are interested in developing the financial skills of their employees. It directly addresses the effects of financial literacy on absenteeism, health, and productivity. In a poll of 400 companies, AON- Hewitt concluded that 75% of companies surveyed plan to expand employee benefits to include and support financial wellness. Now, more than ever, it is imperative that employers educate their employees about their finances. Promoting financial literacy doesn’t just benefit employees, it can help companies save money, recruit top talent, decrease employee turnaround, and gain a competitive advantage.
