Offering financial education can provide a big boost to employee productivity, allowing employees to solve financial dilemmas and refocus on work.
Many employers offer some sort of retirement savings account, but don't go the extra step in providing education and alternatives to borrowing against a 401(k) in times of need, says Jennifer Creech, director of FinFit a financial wellness and benefits company.
Of those with the help of a financial wellness program, 66% percent of employees say they have been able to increase their monthly savings. Thirty-one percent increased savings between $1 and $50, 25% by $51 to $200, 7% by $200 to $400, and 3% by more than $400, according to FinFit.
Creech says trends are pointing to an increase in these educational tools. We currently see a 30% 40% utilization of the financial program once an organization enrolls and yes, that number is steadily increasing, so it's definitely growing in popularity among employees, she says.
She adds that educational programs, such as those offered at FinFit, offer a full array of educational and financial tools employers can offer, including budget calculators, retirement and financial planning tips, assessment of personal finance situations, and so on.
According to a FinFit survey, 85% of employers say employees participating in financial wellness programs showed more productivity at work.
Its incredibly validating to learn that financial wellness programs are delivering such positive results for employers and employees alike, says David Kilby, president of FinFit. Its our mission to advocate for greater financial literacy among working Americans, and to help organizations assist their employees in reducing costly debt through financial education and lending solutions.
In addition, the survey revealed that nearly half of the employers polled indicated a significant reduction in employee requests for 401(k) loans since implementing the program.
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