Poor Employee Financial Health Is Hurting Performance and Organizational Productivity, says GuideSpark

Poor Employee Financial Health Is Hurting Performance and Organizational Productivity, says GuideSpark

LOS ALTOS, Calif. / Nov. 11, 2009 – Employee financial health issues are negatively impacting key organizational objectives and should be a key priority among employers, advises GuideSpark.

Forward-thinking companies that implement financial wellness initiatives can expect a return on investment of over 3:1, according to recent studies.

In its new white paper, “The Need for Financial Wellness,” available to download at http://www.guidespark.com/financial-wellness-learning/resources/whitepapers/whitepapers_financial_wellness.php, experts from GuideSpark (formerly ThriveOn) discuss the advantages available to companies that take ownership of the financial health and wellness of their employees.

A faltering U.S. economy has brought to the surface a key issue that has been building for some time – the average American lacks a basic understanding of money and responsible financial behavior. This lack of financial knowledge and the distress that has resulted is leading to employee productivity drains, turnover and increased benefits cost. Nearly 80 percent of financially distressed employees spend time at work dealing with financial issues. Over 92 percent of employees report losing sleep over money issues and financial stress is leading to illness, absenteeism and increased health care costs.

“Employees are bringing their personal financial issues into the workplace and affecting company goals,” said John Wolff, vice president of http://www.guidespark.com/financial-wellness-learning/solutions/corporations/ [financial education]. “Financial distress can drain 12 to 20 hours of an employee’s productive time at work—each month. It is definitely a problem for employers.”

Financial education in the workplace has been largely limited to employee http://www.guidespark.com/financial-wellness-learning/solutions/benefits-open-enrollment-solutions/ [benefits communications] programs with lackluster results. A recent Colonial Life survey of HR managers shows only 21 percent think their employees have a good understanding of their benefits; 5 percent think their employees don’t know anything about them. To improve the financial well-being of employees, employers must implement much more effective programs that not only address workplace benefits but effectively tackle the broader issue of personal financial security and planning.

A successful financial wellness approach must provide a one-stop location for employees to learn, plan and initiate financial action and success. This involves a range of resources to accommodate varied situations, issues, learning styles and levels of commitment. Therefore, core components of a successful solution must include personal assessments, comprehensive and engaging Web-based education and tools, live seminars, personalized one-on-one financial coaching, among others.

GuideSpark, formerly ThriveOn Inc., delivers Web-based HR software for educating employees on important HR topics like employee compensation, benefits and http://www.guidespark.com/financial-wellness-learning/solutions/benefits-open-enrollment-solutions/ [open enrollment] and financial wellness. By leveraging the latest Web technologies and trends, GuideSpark delivers cost-effective, multimedia education and tools designed for today’s workforce. GuideSpark’s customized training solutions improve company performance by managing benefits costs while reducing employee turnover, productivity drains and financial stress; http://www.guidespark.com.

Contact:

Gail DeLano
Fisher Vista/HRmarketer
(831) 685-9700
gdelano(at)fishervista.com

Joseph A. Larocque
GuideSpark, Inc.
(650) 469-1317
jlarocque(at)guidespark.com