Why financial literacy is important for corporate success

Ein weiblicher Avatar steht vor einem Bildschirm, auf dem das Prinzip Equality gegenüber Equity erläutert wird.

Knowledge promotes understanding. Understanding promotes trust.

What if all your company employees understood not only their compensation, but also how it is structured, and why it was designed that way? What if they knew where the company earned money, how it is invested, and what contribution they personally make to the bigger picture? What if they knew how to take care of themselves and their future?                        

Financial education is the key to making complex business goals easier to understand as indicators of success—and to turning employees into self-confident motivated, and loyal brand ambassadors. In this article, you’ll discover whether participants at the Equity Based Compensation Conference—hosted by J.P. Morgen Workplace Solutions in June 2025—agreed with this statement.

Our mini-survey

We collected the data during the Equity Based Compensation Conference organized by J.P. Morgan Workplace Solutions (read more about the conference in the German-language article in the Unternehmeredition of GoingPublic Media AG).    

Simone Schmitt-Schillig and our client, Kerstin Birnbaum from Merck KGaA in Darmstadt, delivered a presentation titled “Communicating Total Rewards effectively: How financial education strengthens corporate success”. Merck’s successful global communication of its long-term incentive plans served as a case study. (Read the case study here.) During the interactive session, around 60 conference participants answered four questions via a Mentimeter survey on their phones:

Question 1: What is the level of financial literacy of your employees?

In our Mentimeter survey, participants gave their team a score of 6.6 out of 10 for financial literacy. A mid-range result. But is that enough?

Fact: The more complicated the remuneration program—such as LTI, bonus, or employee participation plans—the more financial literacy is required to understand it.

Fact: Only those who understand how their compensation is structured will trust the system, and believe that their hard work for the company benefits them as well. That’s good for both sides.

Ein Bildschirm mit einem Umfrageergebnis. Ein weiblicher Avatar hält eine Lupe auf die Zahl und sagt:
Question "how do you rate the financial literacy within your company?" was answered at average with "satisfactory" or "well".
Ein GIF mit der Frage "Bietet Euer Arbeitgeber Angebote rund um das Thema Financial Wellbeing an?" Darunter ein weiblicher Avatar und Münzen, die ins Bild fallen mit der Antwort "68% sagen ja".
For the question "do you offer finanical wellbeing activities for your employees", 68% of participants answered yes.

Question 2: What does your company offer in terms of financial education?

More than two-thirds of participants reported that their company addresses financial literacy, financial education, or financial wellbeing.

A positive result, but there is still room for improvement. While our survey is not representative, it should be in the interest of every organization to ensure its employees have robust financial literacy as a foundation for making informed decisions.

 

Question 3: Do you measure success?

Only one-third of the companies surveyed measured the success of their Total Rewards communication measures.

What does that mean? As Henry Ford once put it: “Half the money I spend on advertising is wasted, and the problem is, I don’t know which half.” No company today can afford that.

Even the best program only creates value if it is accepted and embraced by employees. To find this out, you need qualified feedback.

Ein GIF, welches die Frage stellt "Messt ihr den Erfolg eurer Kommunikationsmaßnahmen?" Darunter ein weiblicher Avatar, und eine Zielscheibe, die sich füllt
When asked if participants "measure the success of their communication activities" only 30% answered with "yes".
ein GIF mit der Frage "Welche Lernformate bietet ihr in euren Unternehmen an?" mit einer Wortwolke der Antworten.
This question sampled the most used learning formats within an organization.

Question 4: What media do you use to communicate financial education?

Multiple answers were possible for this question. Unsurprisingly, visual media and digital formats are the most common.

But all things are not equal. To reach everyone—taking into account individual preferences, cultural differences, availability of the non-desk workforce, and much more—a comprehensive media mix is essential.

 

How can you ensure that all employees understand how your company handles remuneration, to help them stay motivated?

Our approach: A comprehensive and coordinated multimedia strategy, geared to meet the needs of diverse target groups and learning styles.

Because being equal doesn’t always mean having equal rights, opportunities, or access.

 

Ein weiblicher Avatar steht vor einem Bildschirm, auf dem das Prinzip Equality gegenüber Equity erläutert wird. Der Avatar sagt: "
Learning requirements differ from target group to target group. Therefore, it is important to offer a variety of communication and learning measures.
Eine Grafik mit dem Titel "Multimediale Kommunikation erreicht jeden Lerntyp". Zu sehen sind mehrere Avatare, vier davon sitzend. Über ihnen sind vier Icons zu sehen, welche verschiedene Lerntypen abdecken:
Multimedia communication reaches every learning type.

We provide support—with visual concepts and target-group oriented communication and programs that are easy to understand—helping you strengthen your employees’ financial literacy. Our approach is data-driven and measurable.

Let’s talk about how we can take your employees’ financial education to the next level—together.

 

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Zu diesem Themenfeld verweisen wir gerne auch auf unsere Blogbeiträge Finanzbildung und Mitarbeiterbeteiligung sowie auf unseren Umfragebogen Financial Wellbeing.

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Portrait of Simone Schmitt Schillig - Managing Director Unequity GmbH

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