More and more employers are seeing the tangible benefits of equipping their employees with a financial education. The simple reality is that employee debt and financial stress become a businesses’ problem because it results in a loss of productivity, turnover of experienced staff and negatively impacts the overall efficiency of your teams. The invariable effect is a loss of company profits.
<span class=yellow-hl> Studies in the USA </span> show that changing employee’s financial behaviour is actually easier than changing their diet and exercise habits. <br> <strong> The result? </strong> Decrease in stress and related health-care costs.
Most employees agree that January is ‘the longest month of the year’ due to receiving their pay too early in December. This invariably means staff begin the year with low morale instead of arriving back rested and full of energy.
The Money School has extensive experience creating & implementing successful Employee Financial Education programs for a wide range of clients, including some major financial services companies in South Africa.
Among consumers with annual incomes of R300k - R500k, debt to disposable income was just over 100%. For those earning R500k - R750k, the level was 130%, and for those earning more than R750k, the level fell to just under 120%.
Source: Study conducted by the
University of SA’s Bureau of
Market Research in 2008.
TMS will deliver a benefit to your bottom line.
Learning to manage money effectively is a game changer.
The Money School studies have shown that when people ‘Job Hop’ it is often because they are unable to solve their cash flow problems and believe an increase in earnings is the solution to their financial pressure.
This is not the answer because the underlying issue of money mismanagement is not going to go away with a change of scenery. The correct approach is to seek advice and implement a debt elimination plan to alleviate financial pressure.
The real long-term result of people who take a proactive and informed approach is they get rid of their debt and learn how to build wealth. They are then in a better position to develop their careers.
High interest debts can gain momentum quickly, overwhelming staff's ability to cover normal living expenses. Their solution? Get a new job. And more credit. Our solution? Give your employees a financial education that will prevent both of those ill-advised ‘solutions’.
Want to know why 76% of employees’ take-home pay is going to servicing their debt? Or why 32 – 40 year-olds who bought a house during the boom and have two kids at private schools are most at risk?
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A salary increase is only a temporary fix unless it lands in the hands of a person who knows what to do