Employee turnover is expensive. The cost of replacing an employee can range anywhere from 30% to 150% of their annual salary, depending on their role. One often-overlooked tool to reduce turnover is financial literacy. By equipping employees with the knowledge to manage their finances effectively, organizations can reduce stress and improve overall job satisfaction. Financial literacy is no longer just a perk—it’s a strategic advantage.
A report by PwC found that one in three full-time employees says that money worries have negatively impacted their productivity and engagement at work. When employees feel in control of their finances, they are more likely to stay with their current employer. Offering financial education programs empowers employees to make better financial decisions, creating a ripple effect that improves workplace morale and loyalty.
Employers who prioritize financial literacy initiatives often see measurable results. A study revealed that companies with robust financial wellness programs can reduce absenteeism by 14-19%, showing employees who feel supported financially are less likely to seek opportunities elsewhere.
By investing in financial education, organizations not only boost employee retention but also cultivate a culture of trust and support. As competition for talent increases, companies that proactively address financial stress will stand out as employers of choice. FinFit’s comprehensive financial wellness tools can help organizations implement these programs effectively, benefiting both employees and the bottom line.
