Health Matters
EDITORIAL > by Rose Gantner, Ed.D.
Financial Education Can Help Improve Wellness in the Workplace The challenge of managing money in the 21st century puts pressures and demands on people that can spill over into other facets of their lives, including their work. Research shows that about 15 percent of employees in the United States are so stressed about their poor financial behaviors that their job productivity is negatively impacted.
According to a survey by the Personal Finance Employee Education Foundation, an estimated 30 million American workers – or, one in four – are subject to serious financial distress.
For employers, it is important to understand how important the issue of money management is to employees. They also need to see that financial education can make a lot of sense in a workplace setting. Yes, the problem is first and foremost the responsibility of your employee, but it can ultimately become your company’s problem as well.
• Unwise use of credit
The average American worker lacks both a basic understanding of money and an understanding of responsible financial behavior. And, because a majority of U.S. employees get most of their financial and health products from their employer, they consider it natural to look to the employers for the understanding and guidance required to reach financial security. Obviously, when employees have a heavy focus on financial concerns, it can reduce job productivity by causing inattention at work. Studies have shown that financially well employees are the most productive. Financial education has the potential to change people’s financial behaviors and, consequently, their job productivity.
Managing money problems include: • Over-indebtedness • Overspending • Bad spending decisions • Poor money management • Insufficient money to make ends meet • Concern about money needed to retire
financially distressed. Such employees are estimated to waste from 12 to 20 work hours per month dealing with personal financial problems. Financial-related stress can lead to issues that impact workers such as insomnia, migraine headaches, anxiety, depression and weight gain. Such stress levels can lead to diminished job performance and absenteeism. Positive returns from improved financial wellness • Fewer workplace distractions • Reduced stress-related performance drains • Reduced absenteeism
How poor financial education can affect productivity: • Higher turnover rates
• Improved job satisfaction
• Added health-care costs
For more information on financial education as part of your workplace wellness program, visit www.upmchealthplan.com.
• Chronic stress • Exposure to liability • Lower productivity: Persons who have received a financial education are less likely to take time off to handle personal financial emergencies and less distracted by the stress that financial problems can bring. When employers take on the responsibility of trying to improve their employees’ financial wellness, it can pay off. Studies have shown that financial wellness initiatives can generate a return on investment of more than 3-to-1. The impact of financial distress Estimates show that one in four U.S. employees is seriously
• Increased job retention and staff morale.
Rose Gantner, Ed.D. is senior director, Health Promotion for UPMC Health Plan, which is part of the integrated partner companies of the UPMC Insurance Services Division. These include UPMC Health Plan, UPMC Work Partners, EAP Solutions, UPMC for You (Medical Assistance), and E-Benefits – and which offer a full range of insurance programs and products.
May 2010 > www.mbausa.org > 7