Study finds that thrifty employees are more productive, have healthier work-life balance
Canadian small businesses concerned with the productivity and well-being of their employees may want to focus on initiatives that encourage their workers to save money.
A recent study from the College of Business at Florida State University examined the spending and saving behaviors of 1,500 full-time employees that had experienced job insecurity in the past 12 months, to determine if their financial habits had any impact on their behaviors and well-being at work and at home.
The study found that non-thrifty employees reported experiencing less enjoyment in work tasks, were less interested in finding ways to improve the company, had difficulty concentrating on tasks, reported that work was "nerve-wracking," had a more pronounced work-life imbalance, felt more downbeat and irritable at work, and had a "shorter fuse" at home.
These findings suggest that corporate programs to encourage savings - such as matching 401(k) contributions or simple financial literacy seminars - can be an important business resource for improving employee morale, satisfaction, productivity and even retention.
"Unquestionably, companies will benefit by helping employees recognize the value of thriftiness and teaching tangible financial management skills," said Wayne Hochwater, a professor of management at Florida State and a co-author of the study. "Our research confirms that doing so may contribute to higher levels of performance."
