Employers Profit When They Care About Employee Financial Wellness
THINK TWICE EMPLOYERS: IT'S THEIR DEBT, BUT IT'S YOUR PROBLEM!Your employees are up to their eyeballs in debt. A third of them are broke.
Why should you care? What are you supposed to do, be your employees’ parent? Are their personal lives really your business?
You shouldn’t be their parent. It shouldn’t be your business. Unfortunately, personal debt is not just a personal issue. It’s a business issue and it’s impacting your bottom line.
According to research by Dr. Tom Garman, professor emeritus at Virginia Tech and founder of Personal Finance Employee Education Foundation (www.pfeef.org), employee financial stress is costing your company between $350-$750 per year (per employee) in loss of productivity, absenteeism, workplace distractions,increased healthcare costs and theft.
Based on a 2014 study by the Employee Benefit Research Institute, 58% of workers report having a problem with their level of debt. (www.ebri.org). And according to the Wallstreet Journal, 70% of workers live pay check to pay check (www.wsj.com).
Dr. Susan Jenkins of Idaho State University says, “Even a small increase in an employee’s financial security can add significantly to the bottom line.” And the Federal Reserve acknowledged that financially literate workers make better decisions, leading to fewer absences and greater job satisfaction. Companies experience lower expenses and increased performance. And stable employees are more likely to participate in qualified benefit plans, decreasing the chances that such plans will become top-heavy and disqualified for tax benefits.
Our company offers training in financial wellness and literacy in a three hour workshop, by webinar and online at www.TargetDebtFree.com. Contact us for more information by completing the form below.