The Overlooked Upskilling Opportunity: Employee Financial Literacy via Retirement Plan Benefits
Financial wellness education offers businesses a valuable upskilling opportunity that helps reduce employee stress, increase workforce productivity and improve retention.
The latest ADP People at Work research finds that workers are three times more likely to describe themselves as highly productive when training and upskilling opportunities are provided to them.
To stay competitive, companies are increasingly investing in upskilling programs to develop their workforce, enhance employee satisfaction and improve retention.
While technical training and leadership development often take center stage in the upskilling conversation, there's a powerful opportunity hiding in plain sight: financial wellness education.
Why financial wellness matters to every business
When employees struggle with personal finances, the impact reverberates throughout your organization. Research consistently shows that financial stress contributes to decreased productivity, increased absenteeism and higher healthcare costs.
Financial literacy isn't just a personal benefit — it's a business imperative. Employees who understand how to manage their money make better decisions that affect your bottom line in several ways:
- They participate more effectively in benefits programs
- They're less likely to take hardship withdrawals from retirement accounts
- They require fewer advances on pay
- They show up more present and engaged at work
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Measurable business benefits
Companies that implement financial literacy programs see concrete results:
1. Increased productivity
Employees who worry less about money focus more on work.
2. Improved retention
When employees recognize your investment in their financial future, loyalty increases.
3. Enhanced recruitment
In a tight labor market, retirement benefits that include financial education help attract top talent, particularly among younger workers who prioritize employers that support their overall well-being.
4. Greater Return on your business investment
Employees who understand their benefits tend to fully utilize them.
How to implement effective financial literacy upskilling
Retirement plan providers often represent an untapped resource for delivering high-quality financial wellness education.
To get started, audit your current provider's offerings, such as workshops, one-on-one counseling, digital tools and educational materials. Then, take these three steps to make the most of your commitment to upskilling:
1. Create dedicated learning time.
Treat financial education like other professional development training by allocating work hours for employee participation.
2. Customize content to employee needs.
Partner with your provider to address specific financial challenges facing your workforce.
3. Track engagement and outcomes.
Measure program participation rates, knowledge improvement and changes in retirement plan behavior.
The takeaway: While technical skills training will always have its place in workforce development strategies, financial literacy education represents an often-overlooked upskilling opportunity with smarter outcomes. By leveraging your retirement plan provider's expertise, you're not just helping employees prepare for the future — you're building a more productive, engaged and loyal workforce today.
If you've yet to set up an employee retirement plan, or are less than impressed with your provider's financial wellness education resources, connect with an ADP retirement planning services specialist or call (800) 432-401K to discuss ADP's retirement plan solutions.
ADP, Inc., and its affiliates do not offer investment, tax, or legal advice to individuals. Nothing contained in this article is intended to be, nor should be construed as, particularized advice or a recommendation or suggestion that you take or not take a particular action. Questions about how laws, regulations, guidance, your plan's provisions, or services available to participants may apply to you should be directed to your plan administrator or legal, tax or financial advisor.
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