Electrical contractors know productivity affects profitability but may overlook personal factors that affect employee attitudes toward work and that reduce the motivation to improve efficiency. Last month, I provided some statistics on the extent to which financial stress burdens employees, and I urged you to consider providing your workforce with financial-literacy resources. Doing so will both directly and indirectly affect performance, loyalty, retention and profitability.


Invest in financial literacy


In its survey, “Financial Education Initiatives in the Workplace,” the Society for Human Resource Management (www.shrm.org) consolidated responses from 458 human resources professionals. Even though 83 percent of respondents recognized that personal financial challenges affected employee work performance in their organizations, only 52 percent of those organizations provided any kind of financial education in 2011, a decrease from the 64 percent in 2009. 


The two aspects of work performance showing the most negative impact were ability to focus on work (47 percent) and overall stress (46 percent), so why would employers be less likely to address this?


Employers might assume that financial literacy is part of high school curricula, and there is a growing effort to provide such education. For example, 50 Chicago high schools now offer the Magnetar Youth Investment Academy (www.magnetaracademy.org), and during its five-year life, more than 5,500 students have learned how to budget, obtain credit and invest for retirement. However, most high schools do not provide any financial education.


A place to start


A plethora of options are available if you decide to offer financial-literacy training. Whether you offer it at no cost or subsidize part of the expense, the investment will be reasonable.


Start with a referral to the National Foundation for Credit Counseling (NFCC), the oldest nonprofit organization of its type. Since 1951, local agencies in every state and Puerto Rico have provided financial reviews and education about bankruptcy, debt management, reverse mortgages and credit reports. Services are available in person, by phone and online. NFCC has its own Counselor Certification Program, and agencies are credentialed through the Council on Accreditation every four years.


The NFCC website (www.nfcc.org) offers a wide range of free resources, including a My Money CheckUp analysis (www.mymoneycheckup.org) and a list of financial calculators for everything from budgeting for a baby to inflation’s effect on retirement (www.nfcc.org/consumer-tools/calculators). Anyone can use the site by creating a user name and password.


Expanded options


On his website, www.smartdollar.com, money management expert and talk show host Dave Ramsey makes the case in one sentence for helping employees achieve financial wellness: “Your employees’ financial health is hurting your company in ways you may not realize.” 


According to a 2014 survey by the Employee Benefit Research Institute, 52 percent of Americans have less than $10,000 saved for retirement, and 49 percent have more credit card debt than savings. Almost two-thirds would have to borrow money from an outside source to cover a $1,000 emergency.


Ramsey makes the bold claim that your employees are broke.


Employees with financial stress are more likely to smoke; gain weight; abuse drugs or alcohol; have higher absenteeism; increase payroll expenses and turnover; and have lower engagement, satisfaction and productivity levels, all of which can cost a business money.


Ramsey’s products include Financial Peace University courses, books, DVDs, and links to endorsed local providers in real estate tax, insurance and investment experts. The Baby Steps program offers a simple plan for individuals and families who want to become debt-free.


The Money Habitudes website (www.moneyhabitudes.com) features a 10-minute “solitaire” game to determine one’s money personality and links to many studies of financial attitudes and their effects (www.moneyhabitudes.com/about/press-news/financial-behavior-and-attitudes-statistics). For the do-it-yourself employer, the Good Credit Game (www.goodcreditgame.com) is designed to be taught by instructors who are not credit experts, and you can download the instructor guide for free before purchasing the game.


Be creative


Keep searching for other useful tools. Survey employees to assess their financial concerns, and provide evaluations to participants to measure the product quality. Find noncredit courses at local colleges, or invite financial advisers to provide workshops. Work with your bank or credit union to help employees select the right products to meet their needs, and invite suggestions from employees to create a resource library.


Whether you offer financial literacy training as a reward for your best performers or as a regular part of a professional development program, you will be on the leading-edge in providing this benefit. It may take time to create the optimal structure, but eventually the investment will pay off in reduced stress levels and improved productivity. You might even learn a few things yourself.