Increased Productivity

At any given point in time (and now more than ever) some of your employees are experiencing financial stress related to poor financial behaviors. It doesn’t take a rocket scientist to figure out that financial stress negatively impacts productivity on the job. After all, how productive can you be when your financial life is in shambles? Fortunately, some of this financial stress can be alleviated with sound financial education. Employees who are provided with money management skills and tools spend less time in the workplace worrying about their finances. As a result, they are more focused and productive.

Increased Employee Retention and Company Loyalty

At a time when competition for skilled employees is tougher than ever, providing workplace financial education programs that personally benefit participants sends a clear message that your company cares about each employee. This message of caring may be just what employees need to keep them from seeking employment elsewhere simply because another employer is offering a higher salary.

Click here to see a compilation of 100 randomly selected evaluations from the Money Basics workshop.

Reduced Absenteeism

Employees who are financially distressed are likely to take more time off from work to handle financial problems. Poor financial behavior is correlated to poor health habits and poor health habits result in absenteeism.

Reduced Administrative Costs

Time spent administering garnishments, 40l(k) plan loans, or other employee-related financial problems can be reduced as employees’ financial knowledge and financial behaviors improve.

Reduced Social Security Payroll Taxes

For companies offering flexible spending accounts for health care and or dependent care, increased employee participation not only saves the employee social security taxes, but it also saves the employer’s matching portion of social security taxes. Companies often have poor participation due to the use it or lose it nature of these accounts. A thorough explanation of this benefit to employees can show them how to better use this benefit and at the same time potentially free up money for their 401(k) plan. (The tax savings for the employer may fund the financial education programs).

Increased Financial Readiness to Retire

Helping your employees to financially prepare for retirement helps both you and the employee. A financially secure employee will not likely be financially dependent on income from his employer when he is ready to retire because he will have developed other streams of income from 401(k) and non-401(k) investments. Also, if the company offers an early retirement option, employees who are financially secure will be more likely to take advantage of the offer.

Lower Healthcare Costs

According to a study conducted by Virginia Tech, there is a statistically significant relationship between financial and physical wellness. In this study, those who attended workplace financial education workshops identical to those provided by Butterfly Financial, LLC reported fewer financial stresses and better health. Better employee health generally translates into fewer absences and lower healthcare costs to the employer.

Click here to review the Virginia Tech Study

Greater Appreciation, Understanding, and Participation in Retirement Plans and Company Benefits

Through comprehensive financial education, employees will gain a better understanding of the value of their company sponsored benefits. Employers are likely to see an increase in participation rates for various employee benefits. Also, employees will use company benefits in a manner that involves sound investment choices