Teaching your employees about personal finance is beneficial to them, to your business and to the economy. Here’s how to get started with building a financially fit workforce.
As living costs continue to soar, South Africans across the board are feeling the pinch. Add to this our nation’s low financial literacy rate and the fact that we’re among the worst savers in the world – a survey by accounting firm Deloitte shows that seven out of 10 South Africans spend all, or more, of their income every month – and it’s clear that there’s a serious need for better financial education in SA.
What part can you play in improving financial literacy? You can start within your organisation, by teaching your employees the basics of personal finance.
You already pay your employees a salary and possibly provide benefits too, so you may be inclined to think this is where your financial responsibility to them ends.
But consider the burden of money worries on your workforce: a recent study suggests that 54% of South Africans cannot make their money stretch to the end of the month, and 57% are more stressed about money than anything else, including their health and the pandemic.
Financial stress can take a huge toll on mental well-being, which in turn impacts employee performance and productivity. Your people are your organisation’s greatest asset – a healthy workforce equals a healthy business, so helping your employees take care of their mental health by easing financial stress is in your best interests, too.
It’s difficult to know who among your employees needs to learn what when it comes to finance, but don’t let that stop your organisation from talking openly about money matters. Also, don’t assume there’s a basic level of financial literacy, or that higher earners are necessarily more money-savvy. Start by going back to basics and covering personal-finance fundamentals, like:
However you choose to talk about financial well-being in the workplace – informal workshops, drop-in info sessions, online tools, e-learning, confidential counselling services – this is a topic that’s likely to require some expert input.
To find out about Life Health Solutions integrated well-being services and our Employee Wellness Programme, get in touch on firstname.lastname@example.org or 011 219 0000.