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Why Employers are Concerned about the Financial Literacy of their Employees?

By HR Tech Outlook | Monday, July 13, 2020

Employers can offer a financial self-assessment program to employees. Individuals often have trouble managing their finances because they do not spend enough time thinking about it

Fremont, CA: Companies are finally beginning to realize the importance of employee financial wellness. Employees are bound to be happier and more productive when they are financially well. Financial stress can affect their work performance. While employers are including effective programs to support employee financial wellness, they should also consider sowing the very idea of financial literacy among their employees.

Let us look at some ways employers can improve the financial wellbeing of their employees. Top 10 Employee Engagement Solution Companies - 2020

Financial Self-Assessment

Employers can introduce a financial self-assessment program to employees. Individuals often have trouble managing their finances because they do not spend enough time thinking about it. Employees are unaware of their own capabilities that they can use to manage finances, or areas they need to work on to avoid financial crunch. A proper self-assessment program can help them get answers and build their economic confidence.

Offer Sessions by Financial Counsellors

Employers can hire a financial counselor to give classes to employees. A professional will know better ways to enlighten employees about finance management. To encourage employees’ financial literacy journey, employers can also offer a few hours of financial planning each year.

Provide Budgeting Tools

Another way to help employees is to provide efficient financial planning tools. Employers can start with basics like how to create a household budget. After that, they can provide free tools for retirement planning and investing to employees so that they can get a rough estimation of their social security payment and assess whether they are saving enough money for their retirement.

Offer Websites, Classes, and Other Training Materials

Plenty of high-quality financial planning classes are there on websites like Udemy and YouTube, along with countless articles, programs, and podcasts online where employees can learn about their finances. To help employees find some direction in this regard, employers can try to understand where they struggle and spend some time tracking down material they might find interesting. However, employees will be more interested in taking the courses on finance management if they are rewarded with incentives on finishing courses.

Check out: Top Wealth Management Solution Companies

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