Friday, March 29, 2013

Financial Wellness (Lauryn Morrison)


Financial Wellness in the Workplace
                  Being financially stable is important, not only financially stable yourself but stable within a company. It is also very important for a company to stay financially fit. You want to work for a reliable company that keeps track of spending and expenditures so that you get a sense of security when you’re working there. A company that cares about their finances is a trustworthy company and also profitable. What appeals to many employers is a company’s worth and how successful a company brings in revenue. You want nothing more than to work for a company that has a future and growth potential while also staying financially stable in the economy. The most important aspect, I believe, in being financial well is knowing that your company is tracking their spending and spending money based on more “need” than “want” attitudes.
                  “Financial wellness” means that you have a healthy financial lifestyle. This includes keeping track of spending and keeping your checking and savings with an adequate amount of money. This also means keeping on track with paying outstanding bills and such. Sohyun Joo wrote in Handbook of Consumer Finance Research (2008) that financial well-being also consists of a mixture between income and assets as well as professional guidance. Financial wellness is not to be confused with personal financial wellness. This work is not intended to differentiate the two but to discuss how the two go hand-in-hand in the workplace.  Personal financial wellness “is a comprehensive, multidimensional concept incorporating financial satisfaction, objective status of financial situation, financial attitudes, and behavior that cannot be assessed through one measure,” (Joo, 1998). Joo also explains that financial satisfaction doesn’t always mean that your debt free and bringing in a large income. This satisfaction just means that they have healthy attitudes and a considerable amount of desire to keep spending habits to a minimum.
Being financially stressed at home could ultimately influence your daily workplace obligations. Nothing is more stressing than having to worry about your personal money issues at home. According to the article The Potential Effects of Workplace Financial Education Based on the Relationship between Personal Financial Wellness and Worker Job Productivity written by So-hyun Joo and E. Thomas Garman,  business are starting to introduce workplace financial education, which is a type of employee assistance program. The goal at large is to increase worker productivity. Researchers know that if you’re not focused at work, then you’re not succeeding at your job.  The article also discusses the main reason for person financial debt is that many individuals are not taking the time to educate themselves about how to be financially managed. This includes reading up on financial literacy about facts that could help get you out of a ditch your spending has put you into. According to Garman, the main cause of financial trouble is, “…overuse of credit, overspending, lack of budgeting, too many debts, inadequate shopping and spending skills, low salary or wages, and lack of knowledge about money,” (Joo, Garman 1998). Company’s taking interest in programs to help their employees stay on track at home with their financial obligations look to seek ways in educating their employees about, …”retirement planning, benefit education, money management, credit management, college planning, investments, estate planning, insurance, major purchases (vehicle or house), and tax planning,” (Joo, Garman 1998). Overall, if company’s put forth the effort to show their employees that they care about their financial wellbeing it will also reflect positively on the business. Keeping your financial stressors at home when you come to work is beneficial to your work productivity and with the help of these workplace education programs, more people can feel good about coming to work with an open mind.
                  A company’s financial stability is crucial to the economy.  For a company to succeed it needs to be on track and in control of their financial wellness. A company who focuses on getting their employees financially reliable at home is good way to start getting the company in good finances. When a CEO recognizes the value that personal finances it reflects positive gear to good employment. According to the article Workplace Financial Education Improves Personal Financial Wellness workplace financial education is a growing benefit in the world of business. “Responsibility for providing personal financial education and services to prevent and alleviate money woes is increasingly falling on employers because they have access to resources that can make such programs a valuable benefit,” (Overby, 1998, p.1). If the stresses of employee money problems fall on the employers, who is to say that the company’s obligations to their own won’t fall? Then who is to blame? After employees participate in such programs, they feel a sense of accomplishment and have a better more positive attitude towards their personal finances. The benefits of these programs are not only beneficial to the employees, but also to the employers. Avid workers who are financially stable and in control of their financial management are more likely to be well respected in the workplace and most trusting with their businesses financial obligations.
References:
Garman, E. T., Kim, J., Kratzer, C. Y., Brunson, B. H., & Joo, S. H. (1999). Workplace financial education
improves personal financial wellness. Financial Counseling and Planning10(1), 79-88.
Joo, S. (1998). Personal financial wellness and worker job productivity. Unpublished doctoral

dissertation, Virginia Polytechnic Institute and State University, Blacksburg, VA.

Joo, S. H., & Garman, E. T. (1998). The potential effects of workplace financial education based on the

relationship between personal financial wellness and worker job productivity. Personal Finances
and Worker Productivity2(1), 163-174.

Overby, S. (1998, December 18). Employees’ money woes affect the company bottom line HRToday, pp.

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