{"id":8421,"date":"2023-04-05T12:06:07","date_gmt":"2023-04-05T09:06:07","guid":{"rendered":"https:\/\/www.efrontlearning.com\/blog\/?p=8421"},"modified":"2023-10-03T13:18:13","modified_gmt":"2023-10-03T10:18:13","slug":"employee-financial-training-benefits","status":"publish","type":"post","link":"https:\/\/www.efrontlearning.com\/blog\/2023\/04\/employee-financial-training-benefits.html","title":{"rendered":"Why and how to invest in employee financial training"},"content":{"rendered":"<div class=\"wp-block-classic-wrap\">To many employers, the path to company success can be boiled down to a simple formula: create a plan, hire top talent to help carry it out, and then fine-tune future plans for even more success. But how do you go about attracting\u2013and, crucially, retaining\u2013that talent?<\/p>\n<p>Financial training for employees is a great way to help your company be as appealing a workplace as possible.<\/p>\n<p>On top of ensuring you retain talent, investing in employee financial education gets you results that you just can\u2019t argue with.<\/p>\n<h2>The benefits of\u00a0employee financial training<\/h2>\n<p>We\u2019re going to break down some of the top advantages that come with prioritizing employee financial training.<\/p>\n<h3>Improves employee financial literacy<\/h3>\n<p>Finance touches every part of your business\u2013after all, whether you\u2019re a for-profit company or a charitable body, you can\u2019t get by without cash flow. Every department relies on finance in order to function, and finance influences every department.<\/p>\n<p>On top of that, employees also have personal finances to reckon with\u2013which are determined to a large extent by their salaries. And salaries influence retention; <a href=\"https:\/\/www.randstad.co.uk\/s3fs-media\/uk\/public\/2022-05\/Randstad_REBR_UK_2022.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">around half of employees<\/a> say they\u2019d leave their current employer to perform the same function for a better salary.<\/p>\n<p>So, teaching them how to optimize their spending with financial <a href=\"https:\/\/www.efrontlearning.com\/blog\/2023\/01\/must-have-lms-features.html\" target=\"_blank\" rel=\"noopener noreferrer\">training designed for everyone<\/a> is sure to boost your retention rates, as they\u2019ll know you value their work and want them to make the most of their money.<\/p>\n<h3>Streamlines company processes and communication<\/h3>\n<p>One thing that delays company processes, and especially communication, is confusion.<\/p>\n<p>It\u2019s harder to hit the ground running if people you work with are using terms you don\u2019t understand. It can slow down processes as people have to walk through explanations before they can start being productive.<\/p>\n<p>To streamline these processes, consider training your employees. When they know the common terms, acronyms, and processes involved in finance, they can have conversations about it and complete relevant processes much faster as a result.<\/p>\n<p>For example, one process that can be streamlined would be payroll queries. With the right knowledge, UK-based employees would be able to jump straight into a discussion about the government pension scheme, and American employees will feel confident asking about Medicare Insurance payments and social security. This would lead to less time being spent clarifying terms and asking basic questions before they can get to the bottom of any queries.<\/p>\n<h3>Reduces fraud and finance mishandling<\/h3>\n<p>Scammers rely on catching their victims by surprise\u2013which is why financial training is the perfect ammunition against their fraud attempts.<\/p>\n<p>You can use employee financial training to educate everyone working for your company about both the dangers of fraudsters, and the common tactics they need to protect themselves and your company against. This makes it much harder for them to become the victim of a scam.<\/p>\n<p>And with the FTC receiving <a href=\"http:\/\/ftc.gov\/news-events\/news\/press-releases\/2021\/02\/new-data-shows-ftc-received-22-million-fraud-reports-consumers-2020\" target=\"_blank\" rel=\"noopener noreferrer\">over 2 million reports of fraud<\/a> in 2020 alone, that\u2019s a very important protection to offer.<\/p>\n<p>A similar rule applies to finance mishandling. For example, an employee that struggles to have enough money for groceries at the end of the month because of overspending in the weeks before needs to learn how to better manage their finances. Financial education helps them control their spending, and stay out of debt.<\/p>\n<h3>Increases employee retention and engagement<\/h3>\n<p>We\u2019ve mentioned that increasing employee retention through financial training is a viable strategy. But what about engagement?<\/p>\n<p>As it turns out, <a href=\"https:\/\/www.capitalone.com\/about\/newsroom\/2020-capitalone-mindovermoneystudytips\/\" target=\"_blank\" rel=\"noopener noreferrer\">77% of Americans regularly worry<\/a> about their financial situation, which accounts for a sizable chunk of the workforce. And, of course, anxious employees will find it harder to engage productively with their work.<\/p>\n<p>By investing in employee financial education, you can help ease the worries of these people. This makes it much easier for them to give it their all at work as they won\u2019t be worrying as much about their financial problems.<\/p>\n<p>Plus, it doesn\u2019t hurt that reduced stress levels make for happier employees who don\u2019t crave the kind of life change brought by finding a new job. Numbers prove it, too.\u00a068% of employees are <a href=\"https:\/\/www.talentlms.com\/research\/employee-financial-wellness-research\" target=\"_blank\" rel=\"noopener noreferrer\">more likely to stay longer<\/a> at their current job if their employer offers them financial wellness benefits.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-8430 aligncenter\" src=\"https:\/\/www.efrontlearning.com\/blog\/wp-content\/uploads\/2023\/03\/eFront_20230404_1200x314.png\" alt=\"Designing an employee financial training strategy | eFront\" width=\"1200\" height=\"314\" srcset=\"https:\/\/www.efrontlearning.com\/blog\/wp-content\/uploads\/2023\/03\/eFront_20230404_1200x314.png 1200w, https:\/\/www.efrontlearning.com\/blog\/wp-content\/uploads\/2023\/03\/eFront_20230404_1200x314-300x79.png 300w, https:\/\/www.efrontlearning.com\/blog\/wp-content\/uploads\/2023\/03\/eFront_20230404_1200x314-768x201.png 768w, https:\/\/www.efrontlearning.com\/blog\/wp-content\/uploads\/2023\/03\/eFront_20230404_1200x314-1024x268.png 1024w, https:\/\/www.efrontlearning.com\/blog\/wp-content\/uploads\/2023\/03\/eFront_20230404_1200x314-810x212.png 810w, https:\/\/www.efrontlearning.com\/blog\/wp-content\/uploads\/2023\/03\/eFront_20230404_1200x314-1140x298.png 1140w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<h2>4 types of financial training<\/h2>\n<p>Now that we\u2019ve established why you should invest in employee financial education, it\u2019s time to consider the practical side of things. What does financial training actually look like?<\/p>\n<h3>1. Financial literacy and analysis<\/h3>\n<p>Your employees may wonder how useful financial analysis could be for them, But, it can be incredibly useful, particularly if you want to save some money on a personal scale.<\/p>\n<p>With a strong foundation in financial literacy and analysis, employees can build their budgeting and financial planning skills. This boosts their overall satisfaction levels, while making sure they\u2019re better prepared for anything the future might throw at them.<\/p>\n<p>An example of financial literacy training would be seminars that cover common finance terms. These would aim to help employees look at financial documents and know what they\u2019re dealing with.<\/p>\n<p>This training has the goal of improving employees\u2019 overall understanding of business finance. It\u2019s also aimed at helping employees learn to analyze their own finances.<\/p>\n<h3>2. Tax compliance<\/h3>\n<p>When it comes to employee financial training, few things are more important to get right than tax compliance.<\/p>\n<p>Depending on where you\u2019re located, taxes can be relatively simple\u2026 or very, very complicated. That goes doubly if you\u2019ve recently relocated to a new country, or if you\u2019re unfamiliar with self-assessment tax return or tax laws in general.<\/p>\n<p>That\u2019s why tax compliance training is absolutely crucial.<\/p>\n<p>Employees who have (or want to have) side hustles can benefit particularly from this type of training. For example, UK-based employees could learn how to use tax return software to run their businesses, or you could provide those working in the US with information on how the <a href=\"https:\/\/www.irs.gov\/businesses\/small-businesses-self-employed\/self-employed-individuals-tax-center\" target=\"_blank\" rel=\"noopener noreferrer\">IRS<\/a> taxes self-employed individuals.<\/p>\n<p>With around <a href=\"https:\/\/www.mckinsey.com\/featured-insights\/sustainable-inclusive-growth\/future-of-america\/freelance-side-hustles-and-gigs-many-more-americans-have-become-independent-workers\" target=\"_blank\" rel=\"noopener noreferrer\">36% of Americans<\/a> counting themselves as \u2018independent workers\u2019 who engage with side hustles and <a href=\"https:\/\/www.aviva.com\/newsroom\/news-releases\/2022\/06\/one-in-five-brits-have-started-a-side-hustle-since-march-2020\/\" target=\"_blank\" rel=\"noopener noreferrer\">one in five Brits<\/a> having started a side hustle since March 2020, that\u2019s important information to arm your workforce with.<\/p>\n<h3>3. Industry-specific training<\/h3>\n<p>Every industry is unique in its needs and demands, as well as in the skills its workers need to master. Finances are no exception, which is why industry-specific employee financial education might be just what you need.<\/p>\n<p>For example, industry-specific financial training might cover topics like industry standards, advice for people with flexible contracts, or details on how commissions work.<\/p>\n<p>The last one, in particular, merits a lot of focus.<\/p>\n<p>When employees earn bonuses and even salaries via commissions, they need as much knowledge as they can get on the ins and outs of those commissions. How much can they make before they\u2019re taxed more? If they are taxed, how much will they need to pay to HMRC or the IRS? Which items or services earn higher commissions, and why?<\/p>\n<p>These are just some of the kinds of questions your training needs to address so they can do their jobs effectively.<\/p>\n<h3>4. Leadership and management<\/h3>\n<p>Leaders within your company need to be able to help their departments or teams flourish. Training is always a great way to help with this, and that includes both <a href=\"https:\/\/www.efrontlearning.com\/blog\/2023\/02\/employee-wellness.html\" target=\"_blank\" rel=\"noopener noreferrer\">employee wellness training<\/a> and the kind that\u2019s focused more on finance.<\/p>\n<p>Leaders will often have to manage budgets for their teams or departments. With proper training, they can learn to use every part of their budgets for maximum impact, so every employee has what they need to deliver great results.<\/p>\n<p>They\u2019ll also need to know how to use the tools that your company relies on for management. For example, managers that know how to leverage cloud HR software to manage training, goals, and employee performance for their teams will bring lots of value to your company, including financial value. That\u2019s because they\u2019re using their teams and financial assets to their full potential.<\/p>\n<h2>Final thoughts<\/h2>\n<p>Employee financial training is directly helpful to both your company and its people.<\/p>\n<p>On top of helping your company optimize its financial performance, employee financial education is great for boosting retention rates. That\u2019s because it sets your company apart from the competition, while also teaching employees how to make the most of their salaries.<\/p>\n<p>In a word, it\u2019s universally useful. That\u2019s why it\u2019s well worth the while investing in employee financial training.<\/p>\n<hr \/>\n<p><em><strong>About the author:<\/strong><\/em><\/p>\n<p><em>Stevie Carpenter is a Content Marketing Specialist with over a decade of experience helping small and enterprise-sized businesses develop innovative digital content. He specializes in content for search and lead generation, developing strategies for well-known brands in the e-commerce, SaaS, and communication sectors, among others.<\/em><\/div>\n","protected":false},"excerpt":{"rendered":"<p>To many employers, the path to company success can be boiled down to a simple formula: create a plan, hire top talent to help carry it out, and then fine-tune future plans for even more success. But how do you go about attracting\u2013and, crucially, retaining\u2013that talent? Financial training for employees is a great way to [&hellip;]<\/p>\n","protected":false},"author":33914,"featured_media":8428,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[40],"tags":[2131],"class_list":["post-8421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion","tag-employee-training-and-development"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Benefits of Investing In Employee Financial Training | eFront<\/title>\n<meta name=\"description\" content=\"Why do you need financial education for employees, and what makes employee financial training worth investing in? 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