Barbecue is serious business in Texas, and Original Rudy's Country Store, and Bar-B-Q not only takes its
Question:
Barbecue is serious business in Texas, and Original Rudy's Country Store, and Bar-B-Q not only takes its restaurants seriously, but it also takes the financial acumen of its employees seriously. The 27-year business has 130 employees and operates in three locations in San Antonio. A few years ago, the company's president decided to offer a financial wellness program to the restaurant employees. Topics included in the program are the basics of money, how to budget, how to start an emergency fund, and how to handle debt. The HR director, Sandra Devol, said that they decided to offer the program because most of their associates didn't know how to budget and were living paycheck to paycheck. Many of them had expensive payday loans. The company pays well, so they knew that employees were earning a decent living. However, they were not handling their finances well.
Major reasons why employers don't offer financial wellness programs include not knowing how to start one, not seeing it as a priority, or lacking internal resources. The company adopted an off-the-shelf personal finance program called SmartDollar (https://www.smartdol-lar.com/business/how-does-it-work). While many companies offer this program as an option, Rudy's decided to go "all in" and make the program mandatory for all employees. The program got off to a rocky start when it was first implemented because it can be difficult for people to discuss their finances. As an incentive, the company owner raffled off $1,000 to be split among four associates who were active participants to help them pay down personal debt.
Over time, the program has progressed. Various incentives are offered throughout the year to keep employees engaged and excited about it. Back-to-school cash awards, cash for Christmas, and scholarships have all been included to maintain interest and show the company's support. Employees who have done well in their planning help those who are new to the program or still struggling to get their finances under control.
Rudy's employees are not unique in their reluctance to join in the financial education program. The three major emotions people often feel around money are fear, shame, and cynicism. Company managers, therefore, shared their own personal stories of financial struggles to reduce employees' anxiety. Rudy's offers the course in its facilities in a classroom setting. The company size is ideal for this type of face-to-face training as it gives everyone a chance to participate during class sessions.
In addition to the Smart Dollar program, Rudy's also offers a 401 (k) plan and a healthy eating wellness program. The results of the program have been great. The 127 employees who have participated have paid down over $500,000 debt and have saved over $568,000 in the two years since the program started. The company has also experienced lower medical costs and lower absenteeism.
1. Do you think requiring participation in financial literacy programs is a good idea? Why or why not?
2. Would you participate in such a program if your employer offered one? Would you need some incentive (financial or otherwise) to participate? If so, what type of incentive
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave