Financial Counseling Certification Program (FiCEP) Practice Exam

Which is a benefit of employee financial counseling?

1. Higher turnover rates

2. Enhanced job performance

3. Greater financial stress

4. Decreased employee morale

The correct answer is: Enhanced job performance

Employee financial counseling provides numerous advantages, and one significant benefit is the enhancement of job performance. When employees receive guidance in managing their financial situations, they tend to experience reduced stress and anxiety related to money matters. This clarity and support enable them to focus better on their work responsibilities, leading to improved productivity and efficiency. Furthermore, financial stability often translates into lower absenteeism rates and a greater commitment to the organization, as employees feel more secure both financially and emotionally. As they learn to manage their finances effectively, employees are likely to possess increased motivation and engagement in their jobs, directly contributing to higher job performance. The other options are drawbacks to employee well-being and company culture, highlighting why the correct choice stands out as a positive outcome of providing financial counseling to employees.