Business owners and managers often think about training their employees directly within their subject matter expertise or current job duties. However, developing employees for their present and future positions (and general well-being) can have tremendous benefits. One area of development many organizations provide for their employees is financial literacy.
What is a Financial Literacy Program?
Financial literacy programs help teach sound financial practices and principles to managers, employees, and other people working in your business – not just those working in Finance. These programs can cover topics such as:
General terms such as balance sheet, profit and loss, and cost of goods sold;
Common financial principles and how they are used in daily decisions;
Value creation and how short-term expenditures can yield long-term results; and
Better employee business acumen – meaning the people who have some amount of budgeting in their jobs are more likely to understand how to assess problems and make decisions.
Research shows that when people are financially literate about business finances, as a bonus, it can translate to their personal finances. When your employees can have a better grasp on their personal finances, they are more likely to have less stress, reduced sick days (because they are less stressed), greater productivity, and better workplace loyalty.
How to implement a Financial Literacy Program
Financial literacy programs can be included in your employee training and development plan – and can be put together with the help of financial experts who can help:
Find a champion to help deliver the program (and get others excited about it)
Break down the training into bite-sized pieces (30-minute lunch & learn)
Make it relatable to their work
Create a plan that includes follow-up training sessions to keep the information fresh
One of the best ways to start this new program is to survey your employees for their understanding of the best practices for business finance and budgeting. Then, you can take the information gathered in the survey to connect it to the work they are currently doing and how it will benefit them in the future.
Benefits of a Financial Literacy Program
Providing financial literacy programs to your employees gives them an entirely new set of tools to solve problems, empowering them to be better employees. They can now utilize the knowledge they learned from your training and apply it to work situations, their personal lives, and our communities. Business owners will feel great knowing they are helping share financial education and knowledge with their employees, and employees will have better morale and overall higher productivity.
Creating a financial literacy program doesn’t need to be difficult or complicated. If you are interested in setting up a program for your employees or yourself, contact Community Bank of the Bay’s Business Relationship Managers and start the path to financial empowerment for your employees, yourself, and your business! https://www.bankcbb.com/contact/
By Your Lending Team at CBB