5 Ways to Boost Financial Literacy in the Workplace
When it comes to valuing your employees and promoting a healthy company culture, one aspect that’s often overlooked is financial literacy. In today’s current crisis, we’ve described how thinking ahead will help communicate to your employees what you value as a leader. According to a 2019 survey by Zellis on British employees, only 44% of organisations currently offer programmes to help employees make informed financial decisions. As a result, providing an extensive financial education can help boost their overall knowledge when it comes to making plans for their future.
1.Explore the barriers to higher pay points
Firstly, research shows that lower-paid employees often tend to have the most financial struggles. An article by HR Technologist on employee engagement describes how paying a living wage can help improve your business reputation, increase employee motivation, and boost retention rates. For workers who are struggling, aim to create clear avenues to higher wages with transparent targets and checkpoints. To add to this, provide opportunities for learning and development to help them reach their potential. Often, it tends to be part-time workers or single parents who have difficulty progressing.
2. Suggest the use of financial management tools
One of the easiest ways in which employees can create and plan a budget involves using apps. Forbes recommends using tools like Mint to track your spending over time. Finding out which categories you spend the most on can give you an idea of where you need to cut back. Many of these mobile apps include integration with your checking, savings, credit cards, and mortgage accounts, which can give employees an overall picture of where their finances stand. In addition, many of them are relatively simple to use and don’t require a steep learning curve to get the hang of.
3. Provide informative workshops and reading material
Because it can be a struggle for employees to take the first step, you can make it less intimidating for them by providing free financial literacy workshops and programs to provide them with the information they need. For instance, learning about the benefits that are available to them, how pensions work, and how to invest their savings can give them more confidence when it comes to managing their finances. One method to explore is forex trading, and a post by FXCM on ‘What is a Pip?’ explains how learning about price interest points can help you determine the potential profit or loss, that might result from making a trade. Hosting one-on-one sessions with a financial expert can also help address individual needs.
4. Host fun maths competitions and tournaments
If you’re searching for a team-building activity that can help motivate and inspire your team, hosting a finance-related one doesn’t necessarily have to be boring. Open Access Government’s article on the current ‘Financial Literacy Problem’ claims that improving adult numeracy is also the key to improving financial decision-making. The ability to interpret graphs, figuring out how much change you need during a shopping trip, and how to analyse your spending patterns all depends on knowing the fundamentals of maths. For a light-hearted lesson, consider hosting inter-department competitions and tournaments to make learning about finance more enjoyable and give your employees an added incentive to succeed.
5. Offer personalised employee benefits
Finally, it’s important to note that everyone’s financial situation is completely different. As well as providing higher pay, desirable benefits can contribute greatly to your employee’s financial and mental well-being. As best as you can, it pays off to tailor your reward schemes to suit individual needs, whether it’s providing bonuses, pensions, health insurance, vacation leaves, or skills development. Childcare vouchers, staff discounts, and automated savings options can help boost financial development in the long-term. Recognising hard work and giving credit where it’s due will also increase employee loyalty.
In summary, boosting financial literacy in the workplace will lead to happier, healthier, and more motivated employees. By helping them make sound budgeting and investment choices, you’ll help secure their future both at your firm and outside of it.