Money worries on the job hurt employee productivity, and could contribute to lower overall company profits.
That should worry both employees and employers.
"Nearly a quarter of employees confirm that personal finance issues are a distraction at work, and 39% say they spend three hours or more each week dealing with issues related to personal finance," says Prudential Insurance.
Meanwhile, a study by Pension Consultants, Inc. shows that for every hour an employee is off the job, companies lose $3,600 in productivity, with "financial distress" cited as a "leading cause of employee absence."
To help fix the problem, more and more businesses are looking to train employees on key personal financial matters. "Increasing numbers of employers are implementing financial wellness programs that educate employees about the financial risks they face and provide tools to manage those risks," the insurance giant notes.
Chances are, if a company offers an employee access to a financial wellness program, he will take the employer up on the offer. According to a recent LIMRA study, 72% of U.S. workers would participate in an employer-sponsored financial wellness program, if one was offered.
Of course, not all company money management training programs are the same. The ones that work best are the programs that aim to take a wholesale approach to better money management skills.
"The key to driving financial wellness success within an organization is to develop and implement a program that focuses on solving the key critical problem and not just the symptoms," says Matt Cosgriff, a financial advisor with Lifewise, in Minneapolis. "For example, most of retirement education programs in the 401(k) world currently focuses on solving low savings rates and high loan balances, but it doesn't get at the heart of the critical issue, which is how to help employees save more money."