Excerpts from PFEEF
While it is nice to have a bigger income that alone is not the solution for better financial well-being. What does increase one's level of living is improving financial literacy and putting into practice the newly learned good financial behaviors.
Employers have a large stake in employee financial literacy. Why? Because increasing employee financial literacy improves employer profits. A collection of scholars conducted breakthrough research on the negative costs to employers for the poor financial well-being of employees. One study found that the Department of Defense loses $1 billion annually in direct costs and reduced productivity due to employee stress about money matters. Examples of direct costs are absenteeism, short-term disability, turnover, wage garnishments, and accidents.
A national award-winning research study by Dr. So-Hyun Joo concluded that employers increase profits by $450 annually for each employee who slightly improves his or her financial behaviors. The return comes from reduced absenteeism and less work time used dealing with personal financial matters.
It is also extremely important for employers to realize that a number of studies show that a large proportion of those who are financially distressed, 40% to 50%, report that their health is directly impacted-negatively-by their financial worries and problems. Health problems caused by financial distress cost employers big money.
Employers have a large stake in employee financial literacy. Why? Because increasing employee financial literacy improves employer profits. A collection of scholars conducted breakthrough research on the negative costs to employers for the poor financial well-being of employees. One study found that the Department of Defense loses $1 billion annually in direct costs and reduced productivity due to employee stress about money matters. Examples of direct costs are absenteeism, short-term disability, turnover, wage garnishments, and accidents.
A national award-winning research study by Dr. So-Hyun Joo concluded that employers increase profits by $450 annually for each employee who slightly improves his or her financial behaviors. The return comes from reduced absenteeism and less work time used dealing with personal financial matters.
It is also extremely important for employers to realize that a number of studies show that a large proportion of those who are financially distressed, 40% to 50%, report that their health is directly impacted-negatively-by their financial worries and problems. Health problems caused by financial distress cost employers big money.
So, we can conclude that employee financial illiteracy does impact employers. In short, financially illiterate employees do not make the best decisions for themselves or their employers.
These findings should motivate employers to offer employees access to resources, education, counseling, and advice to decrease their stress about money matters and improve their financial lives. It is vital to empower employees to be financially literate.
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Ranjan Varma
http://ranjanvarma.com
http://personalfinance201.com
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Ranjan Varma
http://ranjanvarma.com
http://personalfinance201.com
2 comments:
Hi
Nice blog...I too started a blog just now. Somebody told me about your blog and because I am from same field so I thought why not visit your blog once. Please do take a look and give me some tips.
According to me many people are investing there money in different places, but they don't have proper knowledge about it. People should not invest blindly or without any knowledge otherwise there may be some chances of risk. First step is to see, second is to check, third is to inspect, forth is to interrogate and finally the fifth is to decide by following this step we can increase our literacy of financial matters. For more details on Financial Illiteracy refer http://www.prime-targeting.com/get-rid-from-financial-illiteracy/
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