By Leisa L. Goodman
I DVR most TV shows I watch, so I don't see many ads, but one recently caught my attention. It poses a question that goes something like, "Will we remember this era as the great recession? Or the recession that made us great?"
Hopefully, the community as a whole is ready to listen to the wake-up call the economy is sending, and learn from our mistakes so we can come out on the other side stronger and wiser for the wear. Credit unions can help by making financial education readily available.
If increasing financial literacy is one of your credit union's goals, you may want to start by taking a look at your employees first. Here are four reasons why:
Financial distress is distracting. Knowledge is power. Real estate values are plummeting and unemployment remains high despite a recent decrease and living expenses are increasing, leaving many distracted by financial concerns--including your employees.
The Society for Human Resource Management recently released poll results noting that 35 percent of employers have reported an increase in employee requests for financial ed.
Nearly two-thirds of those companies have responded by offering financial education resources for their employees. The result? On-the-job concentration levels increase due to a sense of overall financial well-being.
Lower employee turnover. A recent study published by the Filene Research Institute, "The Economics of Serving Low-Income Employees at Tax Time: Implications for Credit Unions" examined a program offered by Staples, Inc., in which tax preparation help and financial education were offered to low-income employees.
Staples found employee retention rates increase by 32 percent, a tremendous return on investment--for each employee who participated at a cost of $75, the company saved $480.
Increase in contributions to employer-based accounts. The Filene report also found a significant boost in employer-sponsored plans such as stock purchases, 401(k) retirement plans and tuition reimbursement.
Increased sales. When employees understand the products they are selling, they explain things to members with confidence. Credit unions offering financial education to employees see their sales increase.
Case studies conducted by Precision Information, LLC, found that credit unions offering Educated Investor University to their employees experienced considerable spikes in product sales. (Full disclosure: Educated Investor University is marketed by CUES.) Sample results include credit unions with a:
- 275 percent increase in sales of new investment products,
- 325 percent increase in gross revenue,
- 275 percent growth in IRA sales,
- 282 percent increase in money deposited in new IRAs and
- 321 percent increase in new term deposit accounts.
Take a good look at your employees' financial ed needs; you may just find the underserved are right under your nose.
Leisa L. Goodman is a CUES Marketing Specialist.
Also read "Teaching Smart Money Management: How Financially Literate is Your Staff?"
