Should companies support staff with financial literacy sessions?

I would say yes. Finance (or the quest for better pay) is one of the most common reasons behind employee exits, so if it is that important to an employee to the extent that it can drive a job or career change, then it should equally be important to the employer, and it can be discussed at work. The totality of a staff’s feeling about staying or leaving a company is not limited to just the job alone but other factors at play in his or her life at the time including finance.

Hidden in the war for talent are some underlying motivations that drive employee behavior. Some of them include fear which can be driven by inflation, economic decline and the resultant impact on personal savings and household income. On the other hand, some are driven by faith based on a firm belief in the company's direction, personal contentment, evidence of opportunities to grow amongst others which can buttress a decision to stay with a company of choice. It was not surprising to see that one effect of the Covid19 period was the "Great Resignation". This shows that external circumstances can make individuals question their internal convictions, life choices, decisions and overall life direction. So, if there is a question as to whether finance can be discussed at work, I will say a BIG YES.

Some of those who disagree with this stance, lay hold to some of the following myths which we will examine below:  

"Money is never enough". That may be partly true. However, management of money can make a difference. Books such as “Cashflow Quadrant” and “Rich Dad, Poor Dad” by Robert Kiyosaki and “Think and grow rich” by Napoleon Hill amongst many others have in no small way helped people make informed decisions about money. If people are more financially literate, it is less likely that they will be frustrated, under pressure or driven to take harsh decisions based on their financial and economic circumstances. Imagine the impact setting up a book reading club or library can have in an office environment? It can foster a reading culture, drive personal development and growth, and nudge the company in a positive direction if it is well managed and leveraged.

“Even if you support them, the person who wants to go will still go". If we think this way, we may never do anything worthwhile. A popular saying says, “If we train them and they go is better than if we do not train them and they stay.” It is usually advised to focus on things within your own control. Can you control who stays and who does not? No. But can you control what you do? Yes.  You can only play your part. That part can involve coordinating financial literacy series from Pension Managers, Bankers, Asset Managers, and other representatives of Financial Services companies that offer one corporate service to your organizations in one way or the other. In some cases, these sessions are completely free or complimentary based on existing client relationships. Why not leverage them?

“It is not the company's business to support employees with financial intelligence.” The earlier we see employees as individuals and not just company staff, the higher the chances that we can retain them. Each employee is on a life journey that extends beyond work to other focus areas which may include family, health, self-fulfillment and realization of visions, dreams, and goals. Financial freedom is one of such goals. The little tips on savings, investment opportunities and money management can go a long way to show that the organization really cares and is doing its own bit to support the realization of their individual and collective goals. If we can organize sessions on emotional intelligence, mental health, stress management and others, why not one on finance?

“A discussion on finance will typically raise demands for salary review.” Not necessarily so. Rather, it can be positioned in such a way that it can even help employees understand how company finance works. The sessions can help them appreciate the difference between sales and profit, income and expenses, profit before tax and profit after tax among others. Administering these series can also close the knowledge gaps between high and low performing employees by helping them see things from a more informed and realistic perspective.

What are the benefits these sessions can give?

They can drive team bonding. Imagine organizing a knowledge sharing session managed by staff themselves where subject matter experts are giving opportunities to share their views on finance? Such sessions can help staff to discover and learn about each other in a better way and appreciate each other even more. They can show staff that they have more things in common based on their shared experiences and foster a team spirit of “we are all on this journey together.”

They can position the employer as an employer of choice. If you are intentional about employees, you increase the chances of being top of mind to employees. It can be a somewhat "scratch my back and I will scratch yours" situation. As people, we naturally gravitate towards mutually beneficial relationships as against exploitative and parasitic ones.

They can drive employee productivity and performance. Money and Finance are subjects that are usually avoided. However, when they are discussed extensively, staff can come to the realization that to have more, they need to do more and even become more. The underlying drive that comes from this can make a whole lot of difference. For instance, an employee can realize that if he or she completes an educational programme or professional course, chances of potential increase in pay may exist.

 They can improve retention. In this sense, the employer is seen as not just as a boss, but as a partner. It is said that employees resign from a manager or a person and not an organization. This intervention can position the employer as a good person. Furthermore, the pressure to look for another job can be driven by the strain of one's personal economy. Financial intelligence however helps to reduce that strain by helping individuals have clear goals, informed choices, and intentional lifestyles. One may note here that initiatives that have come from this thinking such as staff cooperatives, investment and savings clubs, housing saving programmes etc. have been reported as major drivers of retention in companies where they are being effectively practiced and administered. In other words, they give staff an additional reason not to leave their employers.

If we talk about finance at home, in places of worship and with peers and friends, why should we avoid the topic at work? I think we should. What do you think?