4 Ways teaching financial literacy can help quell the Great Resignation swell
The U.S. Department of Labor reports that during April, May, and June of 2021, a sobering 11.5 million workers quit their jobs.1 And by most measures, it’s not over — with almost 50% of employees actively looking to make a transition.1
Considering the labor shortage impacting virtually all sectors, it’s more important than ever for employers to find ways to engage, inspire and retain existing talent. One often overlooked avenue is teaching and reinforcing the importance of financial literacy.
Why should financial literacy be a linchpin in your retention strategy? Because your employees need it. Consider this — a survey from PwC conducted in May 2020 found 54% of workers mentioned finances as their largest source of stress.2 Plus, the PwC survey states more than a third of workers don’t have at least $1,000 set aside to pay for unexpected expenses.2 Starting and/or reinforcing financial literacy can create a win-win:
- Help your employees achieve better financial wellness, reduced stress and a better quality of life.
- Demonstrate your genuine care for their wellbeing, which can lead to greater loyalty and increased retention.
Let’s take a closer look at the ways implementing financial literacy education programs can help you weather the Great Resignation while improving employee engagement.
Better employee health
By implementing a financial literacy program, you as the employer may be able to help alleviate some of the challenges that come with financial stress. What’s more, by addressing the very heart of the issues that tend to result in lower work morale, you’re showing you care about your employees’ well-being — in and outside of the workplace. This, in turn, promotes a positive work culture and can help boost morale.
Financial stress can affect your employees' health in a negative way. The mental health impacts of financial stress are well documented:
- Employees with money woes are four times more likely to suffer from depression.3
- Those who suffer from financial stress are 3.4 times more likely to experience anxiety and panic attacks.3
Not only can financial stress impact their mental wellbeing, but it can affect their physical health. For instance, nearly half (48%) of U.S. adults report sleep loss over money troubles.4 And the physical troubles associated with financial stress continue with symptoms like migraines, stomachaches, weight loss, weight gain and more.
Gain a competitive edge
Maintaining a competitive edge can correlate with employee retention and recruitment. In addition to other employee benefits, implementing a financial literacy program shows that your company has a well-rounded benefits package. Doing so represents a major step in increasing employee retention.
For instance, having a robust workplace retirement plan is great, but employees may feel they’re left on their own to figure it out. With a financial literacy program, professionals and resources can help employees learn how to balance the financial priorities today with their long-term savings goals and feel more confident in their decisions. The same goes for health care — think helping employees learn how much to contribute to an HSA or how to understand their cost and coverage needs — student loan repayment solutions and emergency savings.
Fosters more responsibility in business finances
The more employees understand how finances play a role in their lives, the more it can help them realize how it can help the financial health of the company. Understanding the numbers gives employees the language to speak up about financial matters they see, which could help with improving the company.
In other words, employees who have higher levels of financial literacy can help to advocate for positive changes within a company. In fact, the Harvard Business School 5 explains a few specific ways financial literacy can help employees in the workplace:
- Helping to make more informed decisions,
- Helping them to effectively negotiate,
- Empowering them to advocate for better budgets and
- Understanding how expenses can affect a company’s balance sheet.
All of these skills benefit the company and make employees feel more empowered. If they’re encouraged (and able) to make smart decisions, the more they can feel valued at work. Hence, employees are more likely to stick around for the long haul.
Financial literacy can help employees be more engaged and productive
According to a Financial Education for Today's Workforce survey, around two in five surveyed indicated their financial issues impacted their overall job performance.6 The same survey also indicated 64% of employees were unable to focus on their work, resulting in 34% of absenteeism and tardiness at their workplace.6
Teaching financial literacy could also help your employees focus more on the task at hand and — as a result — deliver higher quality work. The less all of your employees are worried about issues outside the office, the more likely they’ll be able to focus on tasks related to their jobs. More productive employees generally mean they’re happier and healthier — therefore your entire company may benefit.
Voya helps simplify employee financial literacy with a suite of interactive tools
At Voya, we offer a host of innovative financial wellness initiatives centered on improving your employees’ financial literacy and financial wellness.
- The Voya Financial Wellness Experience can help employees understand where they stand on their journey to holistic financial wellness and how to prioritize their next best step. This experience is based on the six core pillars we believe are foundational to money health and financial wellness.
- myOrangeMoney interactive online educational experience helps employees stay engaged and tuned into their retirement outlook. This easy-to-use experience allows employees to estimate how much income they will need for retirement, find out if they’re on track and learn how small changes to their savings can help them get closer to their goals.
- Voya Learn digital video platform offers employees access to 24/7, live and on-demand financial education. Voya Learn content focuses on topics that help improve financial literacy and drive engagement.
- myHealthMoney HSA Contribution Assistant is an easier, smarter way for employees to make HSA contribution decisions. Powered by SAVVI Financial and accessed through each employee's account, myHealthMoney provides personalized decision support for how the employee may contribute to their HSA based on information they provide about their unique financial situation.
- Voya’s Budget Calculator helps employees create a personalized budget by utilizing the 50/30/20 rule which allows them to bucket their finances into needs, wants and savings.
In addition, Voya offers several other helpful tools and solutions designed to improve financial literacy and financial wellness. Learn more about myVoyage — Voya’s fresh, modern and boldly different participant experience.
Reach out to your Voya Relationship Manager
Your employees bring their financial concerns to the office, so it’s best to help address them to ensure they’re well equipped to do the best job possible. Helping them gain better control over their finances ensures they’re less stressed, more engaged, and more effective at the workplace. Their wallets and your company’s bottom line will thank you.
Reach out to your Voya Relationship Manager to learn more about how you can help improve financial literacy in the workplace.
This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/ insurance decision.
Products and services offered through the Voya® family of companies.
Voya is making available to you the myHealthMoney software offered by SAVVI Financial, LLC (“SAVVI”). Voya Financial, the parent company of Voya, and a number of other Voya Financial affiliates, have financial and business relationships with SAVVI which create an incentive for Voya to promote SAVVI's products and services. You should access and read SAVVI's Firm Brochure which is available at this link: https://www.savvifi.com/legal/form-adv. It contains general information about SAVVI's business, including conflicts of interest.
- "With So Many People Quitting, Don’t Overlook Those Who Stay.” HBR.org. October 1, 2021.
- “Employee Financial Wellness Survey: 2020 COVID-19 Update.” PWC.com. May 2020.
- “Financial Wellness Guide 2019.” SalaryFinance.com.
- “Survey: Surprisingly fewer people losing sleep over money issues right now.” Bankrate.com. June 23, 2020
- “The Importance of Financial Literacy in Business.” Harvard Business School. May 26, 2020.
- “Financial Education for Today's Workforce: 2018 Survey Results.” ifebp.org.