10 steps to assess and improve financial literacy in your workplace
Financial literacy has become a critical skill for individuals and businesses in today’s dynamic and uncertain economy.
As almost three-quarters of people in the UK struggle with financial literacy, evaluating and improving financial literacy is crucial for organisations that seek to cultivate a financially savvy workforce.
A financially literate workforce is better equipped to make informed decisions about personal finances and contribute to the overall financial health of the organisation.
Employees that have low levels of financial education and literacy are likely to experience increased financial burdens such as debt or relying on credit for bills, which can lead to anxiety, depression and have detrimental impacts on overall wellbeing.
3 steps to assessing financial literacy
- 1. Conduct baseline assessment – first you need to understand the current level of financial literacy within your organisation. Try surveys, quizzes or informal assessments to collect data and help identify knowledge gaps and potential areas for improvements.
- 2. Analyse demographics – financial literacy needs may differ between age groups, roles and gender. Make sure you include these considerations in your assessments to capture the most relevant demographic insights.
- 3. Review present use/participation – low engagement in financial wellbeing benefits can mean staff aren’t aware of what is available to them or that there are gaps in financial understanding.
How to enhance workforce financial literacy
- 1. Tailored training – based on your assessment results, design education and training plans that address the needs of your organisation. To help optimise engagement, offer a variety of formats such as workshops, online courses, webinars and informational resources.
- 2. Promote budgeting and financial planning - encourage staff to set personal financial goals and budgets by providing them with tools and resources that help track expenses, manage debt and save where possible.
- 3. Debt management education - consider offering education on different types of debt, how to optimise credit use, how debt can affect relationships, interest and strategies for managing and reducing debt. Having a clearer understanding of debt can help alleviate financial stress.
- 4. Investment education – in a world where ‘finfluencers’ are on the rise, ensure employees have insight into basic investment concepts and benefits of long-term investment. Employees will feel empowered to make more informed decisions when investing and not falling victim to online scams/inaccurate information.
- 5. Open dialogue – you’re onto a winner if your employees feel comfortable enough to discuss their finances. More than one-third of employees do not like talking about financial concerns with their employer in the UK, according to a recent report by Bippit. Peer learning and sharing experiences can help create a supportive and collaborative learning environment that may ease anxiety if employees are aware of similar experiences.
- 6. Regularity – keep your organisation engaged by regularly reinforcing and repeating education and workshops.
- 7. Monitor, monitor, monitor – regularly track the impact of your financial literacy and financial wellbeing initiatives. Measure employee engagement, participation, changes to financial stress levels and any improvements in financial behavjours.
In conclusion, elevating financial literacy across your workforce is an investment that reaps dual rewards for individuals and organisations alike.
Through evaluation of current financial acumen, bridging gaps and introducing tailored financial education and financial wellbeing initiatives, you will enable better informed financial decisions.
A financially literate workforce contributes to a healthier fiscal foundation for the company and a more secure future for its employees.
In partnership with Spectrum Life
Supporting 4m+ lives in the corporate, education and insurance sectors with our health & wellbeing solutions.”
