Have you ever thought?
Personal Finance is exactly that: “It’s Personal!”
How my employees handle their paycheck is none of my business.
I’m pretty sure they don’t want me poking around their choices and behaviors about money.
Please Think Again!
Your HR spends time dealing with garnishments from unpaid credit card bills.
The employee may be looking for a higher paying job to cover their expenses.
They may be receiving collection calls during work hours because they hadn’t budgeted for areas like medical emergencies or other unexpected expenses.
Perhaps you’ve noticed that financially stressed employees often produce less, call in sick more often and may ask for paycheck loans to get by. These all cost employers time and money. Simply put, assisting your employees learn how to keep more of what they earn will be beneficial to both you and your employee.
According to the Federal Reserve Bank of Kansas City publications, basic personal finance education can lead to:
- Reduced absenteeism
- Moderated turnover rates
- Decreased direct employer costs related to wage garnishments, bankruptcies, payroll deductions for child support and alimony and administrative costs for borrowing against retirement plans.
- Increased employee productivity
- Reduced incidence of employee theft
- Increased satisfaction with financial situation
- Increased career satisfaction
- Fewer payday advances and 401(k) loans.