Posted by: Professionals In Human Resources Association (PIHRA) | March 6, 2012

Financial Coaching Improves Productivity in the Workplace

Financial Coaching Improves Productivity in the Workplace


By Hasnain Walji, Ph.D.
Vice President, Knowledge Management
TFG, Inc

Financial literacy is a key element in building financial strength and has a direct impact on corporate profitability. Experts suggest that 1 in 4 U.S. employees are seriously financially distressed. A group of academics, led by Thomas Garman, estimate that “30 million workers – one in four – are suffering serious financial distress” that “30% to 80% of financially distressed workers spend time at their place of employment worrying about personal finances and dealing with financial issues instead of working.” [1]

In a recent study by TFG Inc [2], 73% of the participants stated that “accountability to my mentor was one of the main reasons for my success in the project.” The overall goal of this study was to determine whether a more financial literate workforce would have an impact on productivity in the workplace. Beginning with baseline data pertaining to their financial status, as measured by their Financial Strength Score™ and their Financial Stress Evaluation, the subjects went through the program which tracked their financial and behavioral changes before, during, and after the program. After the program ended in October, the study showed that 61% of participants said their productivity at work increased significantly and 75% stated that they were confident in their ability to handle their finances.

An essential part of the project was the personal coaching program provided to the participants. During this program, each employee met one-on-one with a financial coach, who provided them guidance and support while the employee restructured their personal finances. Participants used a unique financial ‘edutainment’ tool called The Frugality Game™, as a core research tool to study the impact of a workplace financial literacy program over a period of eight months.

Other findings in the study include:
•    85% of the participants now have a sense of hope for their financial future.
•    58% are no longer living paycheck to paycheck.
•    65% are ready for expenses caused by unplanned events.
•    77% said there stress levels have improved.
•    73% stated that “accountability to my mentor was one of the main reasons for my success in the project.”

Using the workplace as a financial education classroom, employers are in a powerful position to enhance the state of financial literacy, for both their own interests and those of the nation. More than ever before financial literacy and employee’s financial strength has become a key component in securing higher productivity and engagement levels.

[1] Garman, E. Thomas, et al., “Financial Distress Among American Workers,” Personal Finance Employee Education Foundation, March 23, 2005

[2] Walji, H. PhD. ‘ Financial Strength and Employee Productivity’ A Case Study by TFG Inc. October 21, 2010

Financial Strength Builder™ (FSB) is a unique and proven system that offers money saving services, discounts on everyday purchases, e-learning, live coaching, financial tools and educational resources to help all employees build a better financial life. Getting started is easy and the resources are available in one spot. To learn more about Financial Strength Builder™ contact Phil Garcia: 949-336-4644


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