Patrick Ow shares employees’ difficulty in avoiding financial struggles; workers worry about being underpaid, retirement plans, and making enough to support themselves or their families.
42. Employees Have Poor Financial Literacy
Financial literacy is positively associated with better financial outcomes, more efficient saving and better debt management.
According to Workplace Super Specialists Australia, 39% of workers needed to improve their financial wellbeing, with only 32% considered themselves as ‘financially well.’
The research highlighted that a key driver of financial wellness in the workplace was the worker’s financial literacy. There is a clear correlation between respondents who indicated that they had strong or very strong financial knowledge and their final financial wellness score. More than one in two financially unwell individuals indicated that they had poor or very poor financial knowledge, whereas no one with superior financial wellness indicated they had poor financial knowledge.
Employees who lack financial wellness tend to be more stressed, as observed by more than three in five employers (63.3%). A significant number of employers also noted absenteeism (43.3%), low morale (30%), and absenteeism (16.7%) as other consequences of poor financial wellness.
In a poll conducted by the National Financial Educators Council, 5.2% stated that they had been turned down for a job due to their financial profiles (with 18.2% responding “not sure”). Good financial literacy can improve the likelihood of securing a job.
According to the National Financial Educators Council, lack of financial knowledge cost people an average of $9,724.83. Reported lifetime losses over $15,000 were reported by one out of three respondents. Nearly one in four people reported losses over $30,000 due to the lack of financial knowledge.
43. Employees Are Not Accurately Paid or On Time
Employers are supposed to pay their employees accurately and on time. Laws governing pay periods and computation methods are clear.
However, MyBusiness reported that a staggering number of workers are potentially underpaid. This may be due to interpretation issues related to complicated wage formulas.