Financial status is the most common stressor for employees. As an employer, you may have experienced it yourself.
In fact, almost 70% of workers have admitted to stressing over finances at home and even at work. It’s never a good feeling, and it’s something you want to help your employees get on top of.
Without proper resources, financial stress can lead to a spiral of mental and physical health issues. Not only can it result in things like depression, anxiety or heart issues, but it can also cause employees to pull back on health care expenses, continuing this cycle of finances versus health. That’s not to mention any relationship problems it may lead to.
As a business owner or employer, you may be asking yourself: Is it right to get involved? The answer is “yes.” Investing in your employees is one of the best things you can do to help with their stress. Financial stress causes:
- Health issues
- Loss of revenue from the business
- A negative effect on productivity
- A negative impact on employee experience
- You’ll want to help as best you can. If you’re asking how, you’re in luck!
5 Areas That Help Your Employees Financially
Knowing what your employees need is a good first step. Here are five areas in which you can help your employees with their finances.
1. Education and Advising
With each passing year, financial wellbeing strategies continue to grow within companies. These strategies can come in any program format or dynamic you’d like. Whether you’d prefer an informal session during a lunch break or formalized classes, it can provide a great foundation for financial knowledge.
Now, what exactly would these courses include? Financial issues are vast, so they can cover tools for things like:
- Basic financial education
- Student loans
- Financial planning
- Health or family-related planning
- Good credit
- Saving and investing
2. Senior Employees
As an employer, you can help protect senior employees from financial trouble by learning about the signs of scams and when to help out. Seniors are more susceptible to these scams because of things like financial stress that may come with retirement requirements. If they fall victim to and invest in these schemes, it can be difficult for them to get their life back on track afterward.
Here are some resources you can implement to help prevent this:
- Senior citizens make up a large demographic within the United States. And many of those who have jobs may need financial help. Scams like get-rich-quick schemes tend to target and exploit seniors.
- Keep in mind that many people may not have access to resources like these. You can provide them with this know-how so that, going forward, they’re more readily prepared when in tricky situations.
- Education and outreach programs
- Authorities to investigate
- Having the employee’s contacts listed
- Policies to protect seniors, such as retirement pension plans
- With preventative measures, you show senior employees you’re invested in looking out for them.
3. Student Loans
These are two dreaded words that affect people of all ages. Unfortunately, student loans have become so massive that they can linger for decades. This weight over anyone’s head is sure to stress them out!
This is why some employers invest in something called “student loan repayment.” These programs help students pay off their educational loans slowly but surely.
Some programs take the form of incentives. For instance, when a student puts a percentage of their pay towards their student loans, employers will match that amount in their 401(k) plans. However you choose to work this out with employees will surely help lift away some of that weight.
4. Flexible Hours
It’s becoming more popular for employers to work with employees to come up with flexible schedules. Some provide the option for four 10-hour workdays instead of the standard five eight-hour days.
Flexible hours can help employees who have long or expensive commutes, family needs or even other jobs.
5. Reduce Costs
Try to figure out ways to help your employees reduce their expenses. Small things add up!
If your employees work in a more casual environment, expensive clothing may not be a necessity for them to wear. Likewise, transportation comes at a big cost, too. You can also look for ways to provide food on-premises or otherwise encourage employees to order takeout a little less. It’s possible to eat great on a budget.
Where to Start?
Depending on your budget, you’ll want to choose the resources that are most feasible for your employees. Those that benefit them the most will be worth it in the long run. If your business has senior employees, invest in resources for them. If you notice your employees have student debt, start a student loan repayment plan.
When employees have the education, options and resources to manage their finances, they thrive. You’ll see your company benefit as well, as employees become the best they can be.