Financial Wellness Programs

Careers

Programs To Boost Productivity

 

Financial Wellness

All employers want happy and productive workforce. A staff that has “financial wellness” is a happy and productive staff. Research by Joo of Virginia Tech shows Financial Wellness and key measures of work productivity are positively related.

Poor Financial WellnessGood Financial Wellness
Frequently absent from work Come to work
Spend excessive time at work dealing with personal financial problems Use a minimum of time at work attending to personal financial matters
Experience a decline in job productivity from
one year to the next
Enjoy consistent or increasing job productivity

Financial matters and financial stress affect not only an individual’s personal and family life, but also a person’s work life. Approximately 15% of workers in the U.S. are currently experiencing stress from poor financial behaviors to the extent that it negatively impacts their productivity. The figure in Malaysia is very high as well. AKPK the government agency tasked with assisting Malaysian with financial problems have reported more than 100,000
Malaysians seeking help. The average credit card debt of the persons is RM 100,000. Poor financial behavior results in extremely high cost incurred by the employer. It will result in:

  • Absenteeism
  • Tardiness
  • Fighting with co-workers and supervisors
  • Sabotaging the work of co-workers
  • Job stress
  • Reduced employee productivity
  • Lowered employee morale
  • Loss of customers who seek better service
  • Loss of revenue from sales not made
  • Accidents and increased risk taking
  • Disability and worker compensation claims
  • Substance abuse
  • Increased use of available health care resources by the employee and dependents
  • Thefts from employers
  • Lack of employee focus on the strategic goals of the employer
  • Employer time to deal with poor financial behaviors of employees
  • Loss of trained personnel

In United States, 54% of average income workers in a sample of white-collar occupations are dissatisfied with their financial wellness; 30% feel they are always in financial trouble and
35% find it hard to pay bills; 51% worry about how much they owe; 44% do not set aside money for retirement; 60% do not have enough money set aside to live for longer than 2 months if they lost their jobs.
Smart employers realize that financial education is a key factor in recruitment and retention.
The best staffs are in control of their personal finances. These workers are happier in their
financial lives and it shows in their work. Basic research will reveal that most people on the street do NOT understand the basics of personal financial management. Hence the problems such as:

  • Using credit cards imprudently
  • Buying unsuitable insurance policies
  • Insufficient knowledge for planning for their children’s education and retirement
  • Investing in unsuitable instruments
  • Not knowing how to transfer estate to the next generation
  • Not knowing how to blend in employee benefits and personal financial plans

Financial Counseling

At some point in time, Malaysians will buy big ticket items like cars and houses. Most do not understand, the different “type” of interest charged for these transactions. Most do not know make comparisons between the more than 100 mortgage plans in the market. Most do not understand that they are charged substantially higher than the “advertised rate” when they purchase their cars and or take personal loans.

Estate Planning

It has been repeated reported that there is more than RM 40 billion worth of assets locked up due to unsettled estates. According to “Jabatan Tanah dan Galian”, there is more than 1 million pieces of land worth RM 38 billion which has NOT been transferred. Most of these assets belong to Muslims. It is believed that every Muslim family in the whole of Malaysia is affected. This problem of unsettled estate has been around more than 50 years. This is a MAJOR problem that no company has bothered to solve.

Employee Centric Benefits

Most companies spend tremendous amount of money to provide “employee benefits” to their staff. But some of these benefits may be benefits that they do not want or are benefits they already have.

Objective

  1. The objective would be to provide “financial wellness” course that will teach amongst the topics:
    • How to set up budget
    • When to refinance their loans
    • What kind of insurance policies there are and which ones are suitable for them?
    • How to plan for their children’s education and retirement
    • How to choose investment instruments and detect “get rich schemes”
    • How to use wills and trust for estate planning
  2. The objective would be to be able to provide wasiat and appointment of executor for ALL staff
  3. The objective would be to provide and “individual focussed” employee benefits plan where the employee can pick and choose employee benefits that fits their situation.