In a new study conducted by the Personal Financial Employee Education Foundation (PFEEF) and Employee Benefits News (EBN), 70% of respondents thought that workplace financial education is important or extremely important to the overall level of productivity in their organization.
Other notable findings included:
- 51% of employers surveyed saw an increase in employee wage garnishments
- 42% of employers surveyed saw an increase in employee emergency loans
- 34% employers surveyed saw an increase in employee requests for time off to deal with personal financial issues
- While 88% of employers provide retirement plan education, only 28% provide basic financial education on critical items such as budgeting, debt reduction and credit management.
Fidelity Investments recently reported a drastic increase in 401(k) hardship withdrawals and loans during the second quarter this year. Over the last 12 months, 11% of active participants initiated a loan, up 2% from the year prior. Some additional statistics offered by the study included:
Retirement Plan Loans Symptomatic of Financial Health Issues
- During the second quarter, 62,000 participants initiated a hardship withdrawal, as compared to 45,000participants who initiated one during the prior quarter;
- 45% of participants who took hardship withdrawals one year prior also took a hardship withdrawal in the 12 month period ending in the second quarter of this year.
Over half (53%) of large U.S. employers are making changes to their 2011 health plans in order to accommodate the new Patient Protection and Affordable Care Act, according to a survey by the National Business Group on Health.
Providers face rising health care costs but still must supply the legally required amount of care. To do so, 63% of employers who are changing plan details have decided to raise the percentage that employees contribute to the premium, while 46% aim to raise out-of-pocket maximums. Another 61% will be offering consumer-directed health plans, or CDHPs, which are a proven method of increasing consumer flexibility while cutting costs.
An amazing 60% of companies used candidates’ credit reports to help make hiring decisions in 2009, according to a recent Society for Human Resource Management (SHRM) poll.
So, the natural question is why a credit score of all things would be used to evaluate a prospective employee?
One likely reason might be that employers worry that a poor credit score indicates a lack of responsibility that could ultimately translate into poor performance.
Credit score indicative of a poor performer?