Many total rewards professionals are facing a harsh reality: when employees need their support the most, decreasing revenue and increasing health-care costs are forcing cost-cutting, with traditional benefits often being reduced. Purchasing Power's VP of Sales & Marketing, Elizabeth Halkos talks about how these tough times are a good time to introduce financial literacy/wellness programs as a way to help workers feel more secure in this issue of Workspan.
This loss of traditional total rewards not only means lower morale, but increased employee stress, which can impair productivity. Studies by the
Personal Finance Employee EducationFoundation (PFEEF) found that at anygiven time, 15 percent to 30 percent ofemployees have such severe financial problems that their productivity at work is negatively affected.This financial stress can take the form of:
• Less satisfaction with pay
• Work time wasted dealing with personal finances
• More absenteeism
• Poorer health.
All of these consequences, especially time wasted at work because of personal financial stress, hurt an employee’s productivity and the company's bottom line.
Read Boost Employee Financial IQ online