"Financial Literacy -VS- Employer's ROI"

If you are an employer, you may have used the saying, “What Goes Around Comes Around”. Please think about how those words may apply to you and your business. Helping your employees learn how to live within the paycheck you are providing can actually help your profitability.

Today’s economic situation has caused everyone to re-evaluate their priorities, to re-think their long term plans and sharpen the focus on daily living and the decisions provide secure passage through the month. More employees are looking to the employer to solve their problems. Now is the time to work together, bring real meaning to 'extended family' and the word 'team'. "Through Sharing We All Grow !"

Employers are beginning to realize that by investing more in the employee it does impact overall performance, and productivity and profits. Financial literacy in the workplace brings a very high ROI. The damaging effect WITHOUT personal money management skills in employees show:
· Absenteeism
· Tardiness
· Garnishee
· Diminished customer service levels
· Loss of revenue from sales not closed
· Increased risk taking
· Increased request for pay advancement / raises
· Theft
· Increased health care costs
· Employee turnover

Without financial literacy in the workplace, employees bring their frustrations into their work environment and it spreads like a virus. One in four Americans (30 million in all )are in serious financial distress according to a study done by Dr. Thomas Garman. This domino effects not only the employee, their co-workers, their family life, but also the employer.

It’s smart business to provide employees with education, resources, and options. This empowers them to make better decisions with less stress and less cost to the company. In addition to the regular education on investments, there is a need for daily money management in the workplace. Employers providing basic personal money management education have shown a return with $450 in positive job outcomes, $300 in lower health care cost, and those who are offering flexible benefits accounts might even realize an additional savings of $1,274.

Causes of financial stress is the workplace is seen in four main categories: the most common is life events and emergencies that deplete personal savings and the ability to generate sufficient income. The second is primarily skill-based and involves a lack of understanding about how to manage, save, and invest money wisely. Americans have not been taught basic money management skills. The third is psychological factors that include impulse buying and responding to advertising and marketing tactics. The fourth is income stagnation due to inflation-adjusted real income of the vast majority of workers. Actual take home pay hasn’t increased much since year 2000. What incomes did rise, inflation ate.

Spectrum Resources offers education, resources and options. Spectrum Resources educators goes into the workplace for 'Lunch and Learns', or prior or after work hours. Call (863)967-0660 or email: SpectrumResources@tampabay.rr.com and visit often all our blogs each one with new and different lessons. http://moneysavingtips.polkvoice.com/, http://spectrumresources.wordpress.com/ and of course keep this one in your favorites: http://financialeducationandoptions.blogspot.com/