HR Management & Compliance

Financial Education Offers Benefits to Employees, Employers Alike

“It’s no secret that the economy is weak, and individual financial security is top of mind for many workers—now is the time to educate employees about personal finance and financial well-being,” Jackson says.

First-of-Its-Kind Award

Inspired by a working group of the President’s Advisory Council on Financial Literacy, SHRM and the American Institute of Certified Public Accountants (AICPA) created the first national award for excellence in workplace financial education. The WLIFE award, which stands for “Workplace Leader in Financial Education,” is aimed at highlighting the importance of financial wellness in the workplace and recognizes employers that provide financial education programs that improve employees’ personal well-being.

The term “financial wellness” is defined by SHRM and the AICPA as follows: “a person’s skill and knowledge for making sound decisions about personal finances, such as saving, budgeting, using credit wisely, education, tax and retirement planning, investing, and choosing company benefits wisely. A financially literate workforce understands financial concepts such as the time value of money, the effects of inflation on savings, compound interest and the rate of growth and the benefits of deferred income and reinvested capital gains and interest.”

Nine Employers Recognized

SHRM and the AICPA recently honored nine organizations—out of a pool of more than 300 applicants—with the inaugural WLIFE award, recognizing their efforts in setting the standard in workplace financial education programs.

The winners are American Express (New York, NY); Centre Area Transportation Agency, also known as CATA (Port Matildo, PA); Heritage Wealth Advisors (Richmond, VA); Mountain America Credit Union (West Jordan, UT); NYSE Euronext (New York, NY); New York Presbyterian Hospital (New York, NY); Therm-o-Disc, Inc., a division of Emerson Electric (Mansfield, OH); UA Healthcare (Tucson, AZ); and WorldatWork (Scottsdale, AZ).

Judging was conducted by members of the President’s Advisory Council on Financial Literacy, the National CPA Financial Literacy Commission, human resource professionals, and CPAs. “The winning companies stood out because their financial education programs showed results, innovation, effective tactics, and a significant scope in increasing employee financial wellness,” SHRM and the AICPA said in a statement about the award.

Programs Are Win-Win

The benefits of workplace financial education programs are many—to employees and employers alike. “As CPAs, we know that financial security brings peace of mind,” said Barry Melancon, CPA, CEO of the AICPA. “Employers who commit to improving the financial understanding of their employees improve the lives of these individuals as well as the financial well-being of the communities where they work.”

As a result of improving employees’ financial wellness, workplace financial education programs also lead to reduced absenteeism, increased employee productivity, increased contributions to the company’s 401(k) plan, and greater employee allegiance to their company, according to information on www.wlife.org, a website about the WLIFE award.

A toolkit and information to help employers develop their own financial education program are available at www.wlife.org.

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