Financial literacy in the workplace is one of the solutions for dealing with financial problems that employees are currently facing and has an impact on their work productivity.
Based on a survey from PwC in 2022 , 56% of employees experience stress with their financial condition. This affects health conditions, interpersonal relationships, work attendance, and work productivity.
In early 2021, QM Financial also conducted a survey of a number of corporations which indicated that 87% of companies needed financial education programs for employees and 52% of employees did not have ideal financial intelligence.
Looking at the data above, it can be seen that financial literacy has an important role in the workplace. Employees can develop an understanding of financial management and avoid problems related to it.
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Through this article, Mekari will help you to understand financial literacy more deeply and how to build financial literacy in your workplace.
Definition of Financial Literacy
Financial literacy or financial literacy is an ability to carry out proper and appropriate self-management and financial management in the long term.
Individuals who have a good level of financial literacy are not without financial problems. They will definitely face things like emergencies, debts, investments and financial cycles. However, they can face and find solutions to these problems effectively.
There are no limitations in financial literacy, each individual has his own way. The more secure you feel about your own financial condition, the better your level of financial literacy will be.
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Benefits of Increasing Employee Financial Literacy in the Workplace
Financial literacy in the workplace generally helps employees to deal with personal problems related to finances. As a result, employees can focus more on their work and are able to clear their minds so as to increase productivity.
There are various other benefits that employees can get, such as:
Ready for emergencies
Topics that are often discussed in increasing financial literacy can help employees to find out various topics of problems they will face later.
The mindset or mindset of employees will develop as they encounter unexpected or unplanned events. This can prevent them from mistakes or decisions that are quite fatal.
Help achieve goals
Through a good understanding of budgeting and financial turnover, employees can set a plan according to their expectations and the direction they want.
Even though there are goals that cannot be achieved within the specified period, financial literacy can build self-confidence and increase the chances of achieving goals.
So that by forming a re-planning, the goals that were previously delayed can be achieved in the next period.
Less financial stress and anxiety
Ignorance of employees in dealing with financial conditions that tend to be unpredictable can interfere with their mental health such as excessive stress and anxiety.
By helping employees gain knowledge related to finance with financial literacy in the workplace, such as learning how to form a personal budget, manage accounts payable, and save in the long term, this ignorance can be overcome properly.
In addition to the benefits that employees experience, financial literacy in the workplace is also beneficial for companies, such as:
As discussed above, prolonged stress and anxiety can ultimately affect physical health.
Usually the diseases that employees face are high blood pressure, digestive problems, difficulty sleeping and excessive fatigue, migraines, and typhus. Employees who need care and treatment can certainly increase the insurance costs paid by the company.
With literacy in the workplace, this can reduce the burden of health costs due to mental health due to anxiety about facing a financial crisis.
Reducing employee absenteeism
Companies that do not manage the financial literacy of their employees have a fairly high absenteeism rate. Whether it’s absent because of illness or because you want to be absent from work.
If they are able to manage their personal finances effectively, they will naturally have a more balanced and healthy mind and spirit. And can reduce the number of employee absences at work.
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Strategies to Increase Financial Literacy in the Workplace
One of the best ways to build financial literacy in the workplace is to develop a financial education program.
To achieve an ideal educational program to build financial literacy, there are several strategies that you must do so that the company’s program is right and effective.
Here’s the strategy:
Employee survey on financial matters
It’s a good idea to start your strategy by having open communication with employees.
Form detailed questions about financial conditions and problems that employees often face, and ask what they want as a solution to these problems.
Data from this survey can help you find out how high the level of financial literacy of your employees is, how severe the problems they face, what they need, and the role and focus of the company in supporting its employees.
Such as problems and different focuses between generations. The Millennials are focusing on buying a house and household expenses, or the Baby Boomers are starting to focus on retirement and retirement savings.
After the survey has been carried out successfully, collect the various answers that the employee has answered. Make the answer your benchmark in developing strategies and subsequent programs to build financial literacy in the workplace.
Actively convey knowledge about finance
Today’s information technology, which is increasingly developing, can be utilized by companies to build employee financial literacy.
Dissemination of knowledge information through wall magazines or office desks may still be applicable to companies, but does not produce results that are quite effective.
For this reason, companies can take advantage of online social media networks that employees frequently use, such as LinkedIn, or form their own networks that employees will specifically use as a medium of communication.
Even now, the elderly have begun to be aware of the development of modern information technology trends. Thus, conducting social campaigns around financial literacy themes on social media can be spread widely and effectively.
The media that companies can use include webinars, workshops , email blasts , posts on the company’s social media channels, articles on the company’s website, and infographics through online videos .
Create a positive culture of financial discussion in the workplace
There are still many people who are afraid, embarrassed, or uncomfortable discussing financial management in their daily activities at work. Some workplaces still feel that discussing basic finances is taboo.
Even though this is a good and positive habit so that each employee has the same level of financial literacy. Even this habit can lead to increased financial literacy together.
Therefore, company management can take initiatives to create this positive culture in the workplace. Take advantage of free time at work to implement it.
Gradually start to reduce the bad stigma in discussing financial management, and invite employees who feel shy or afraid to discuss this positive topic.
In addition to discussions about financial transparency, employees can also start simple habits that can have a positive impact on small management. You can start by bringing your own provisions from home, setting aside income for investment needs, and so on.