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 Planning, 10(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 Productivity, 2(1),
163-174.
Overby, S. (1998, December 18). Employees’ money woes affect
the company bottom line HRToday, pp.
1-3
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