Financial literacy as a tool for talent retention and productivity

Increasing salaries is not necessarily synonymous with increasing the wealth of your employees - financial anxiety is not only associated with lower incomes, but also with a lack of control over one's financial situation.‍

Promoting knowledge and mastery of personal finance topics therefore seems to be an urgent need that can be prioritised by your company, with little financial impact on your business. Here's why your company should take an active role in promoting financial literacy among its professionals:

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1. Workers' financial well-being: Having the knowledge to make appropriate financial decisions and develop a healthy relationship with money provides a sense of security and financial stability, reduces debt and improves quality of life.‍
2. Productivity and anxiety reduction: A PwC study shows that people spend an average of 3 hours a week at work thinking about how to solve their financial problems. So, in addition to the impact on employees' emotional and mental health, their concentration and performance are being affected. By providing financial literacy programmes, companies can help reduce this pressure, increasing not only employee productivity but also job satisfaction.
3. Attracting and retaining talent: Candidates value companies that have training and development programmes, not only professionally but also personally. By investing in employees‘ financial growth, companies demonstrate a commitment to their well-being and long-term success, which can help attract and retain qualified talent.
4. Reducing financial risks: Companies benefit from having financially aware employees, as they are less likely to face financial difficulties that could affect their productivity or create additional obligations for the organisation.
5. Corporate responsibility: Supporting the development of your employees’ financial literacy is an investment in the Social component of ESG. Thus, in addition to positively impacting their employees‘ lives by helping them develop financial skills that can benefit them both in the workplace and outside of it, companies are also raising their ESG rating.

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Paynest, an integrated solution for innovative leaders focused on cost efficiency and employee engagement, has developed a platform that allows your company to take an active role in your employees’ financial well-being. On the one hand, it allows them to regain liquidity and control over their financial situation by giving them access to the salary they have already worked for. In emergency situations, the employee won't need to go to the employer and be subject to long evaluation and approval times. On the other hand, it offers them a financial literacy tool, with articles on personal finance management, and a certified coach who will clarify any doubts they may have individually and confidentially.