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Good for Employees and the Bottom Line
While current economic conditions appear to be showing signs of improvement, 83% of American workers continue to be impacted by personal financial issues ("2013 Research Report on Employee Financial Stress," Financial Finesse, June 2013). They often look to their employer for help in navigating their personal financial issues. As trusted advisors, CPAs are in an ideal position to help their clients educate their employees. In a 2013 survey by PricewaterhouseCoopers, 23% of employees admitted that financial issues have been a distraction at work, and 19% had spent five hours or more per week dealing with their personal finances (Kent E. Allison, "Employee Financial Wellness Survey 2013 Results," June 2013). This impacts employee productivity; employee financial stress can cost up to $5,000 per employee per year (Dan Kadlec, "Proof That Workplace Financial Education Works," Time.com, July 2012).
Approaches to improving financial literacy include client services, community service, and general workforce outreach. CPA firms across the country are working with clients to design and deliver financial literacy programs that will benefit employees and enhance profits.
This article focuses on how CPAs can leverage their professional expertise to improve financial literacy. The many benefits to both a company and their workforce are detailed, and the potentially substantial savings resulting from providing financial education are calculated. The knowledge and skills that individuals need to make informed decisions are discussed, as well as how to integrate these competencies into effective resources and programs. Finally, there is an overview of effective programs and practices from award-winning workplace financial education programs. The Exhibit summarizes how all these topics are integrated.
Hie Role of CPAs
CPAs are in an advantageous position to improve financial literacy. The wide disparity in providers of financial education underscores the importance of high-quality sources of unbiased financial information. Consumers are at risk of receiving education from providers that are trying to promote an image or sell products; this can result in decisions that are not in their best interest. CPAs have an opportunity to provide reliable and objective information, becoming a vital component in this critical effort.
Providing employees with information to become financially knowledgeable will not only result in a healthier workforce, but also improve an employer's bottom line....