Many workers today are under financial stress, and they could ask their company for assistance in addressing it.
As inflation soars to its highest point since the early 1980s, families are particularly severely impacted as a result of the rising cost of goods and services.
The economy is being severely harmed by increasing energy and gas prices, and many people are already experiencing actual wage cuts and in-work poverty due to increased food, rent, and mortgage costs.
As a result, businesses are uniting to assist their staff members as the cost-of-living issue worsens and millions find it more difficult to pay for necessities.
The price of financial stress at work
Workplace financial stress among employees may have an impact on the net productivity of the firm. Financial stress at work costs companies an estimated $250 billion annually, according to a Mercer research.
Managers should devote time and resources to their teams’ financial well-being at work in order to promote employee well-being and corporate success.
The resources and advice listed below might assist managers in providing financial assistance to their staff members.
Promote planning
Ritika Asrani, owner of St Maarten Real Estate shares: “Motivate your staff to spend some time comprehending their financial circumstances. Employees may be better prepared for both short- and long-term financial well-being by engaging in proactive planning, budgeting, and research.
These basic procedures provide a first line of defense against unforeseen financial strain.
Give staff members insight about financial planning to assist them in beginning their journey toward financial stability.”
Create tasks around saving
Here’s a simple method to encourage workers to consider their financial well-being. For instance, set a goal for your group to cut down on impulsive purchases, and then gather as a unit to celebrate your accomplishments.
Regardless of location, you may also use a mobile app for well-being to promote involvement among all members of your workforce.
Assist with stress reduction instruction
Joshua Martin, owner of Atticus Home Buyers tells us: “Anyone experiencing financial difficulties at home may find themselves under a lot of stress.
A mental health program that includes instruction on stress management techniques may be quite helpful to your team, just like any other stressor.
Participating in the same mental health program also provides you with a common vocabulary to discuss money matters in a manner that is legitimate and understandable to everybody.
These sorts of stress-reduction techniques are crucial even when financial difficulties have passed.”
Privacy counts
It may be challenging to talk about money as it is such a delicate and emotive topic, particularly in a social context.
Supporting materials should respect participants’ right to privacy and provide them the freedom to investigate financial issues without worrying about being judged.
Behavior change is necessary
Tommy Mello, owner of A1 Garage says: “The tried-and-true behavioral change science ideas apply equally well to altering financial behaviors and decision-making.
The most important things are to encourage social engagement, peer support, optimistic views and attitudes, little steps, and consistent responsibility.”
Examine your benefits package
Have you ensured that your staff members are informed of all the primary advantages at their disposal as well as—perhaps more importantly—any supplementary services your suppliers may provide?
As part of your routine communication schedule, go through this. A lot of businesses are unaware of the additional services that might be included in their benefits package.
When an employee is feeling overburdened and worried, employee support initiatives may be a very helpful resource.
Having access to counseling services may be beneficial and provide assistance on a wide variety of subjects.
Make use of your benefits providers’ assistance.
The majority of suppliers give webinars and other forms of communication as staff assistance. Make sure you ask your providers about their offerings.
Give financial guidance
Establishing a financial wellness policy that complements your overall well-being plan can help your staff members’ financial well-being.
This might be as easy as providing links to free resources for managing finances and debt or as complex as in-person or webinar financial education seminars.
Rebates and incentives
To assist staff members in saving money on their routine purchases, think about introducing discount and incentive programs. Most discount programs may result in savings on ordinary home spending, insurance, and grocery shopping.
Buy/sell annual leave
While this may be a temporary solution, employers should be aware that encouraging workers to take frequent vacations may also help them feel better mentally and prevent burnout.
However, workers may be able to sell some of their unused days for a portion of their salaries which could help their financial positions.
Workers are not ready for an unexpected financial crisis. Aid in their ascent
Twenty percent of Americans said in a poll that they had saved nothing for emergencies in 2021. A solid budget is the foundation of successful saving. There are tools to help with both.
There are tools that generate customized budget objectives based on actual information about an employee’s monthly salary and living circumstances.
Workers have the ability to categorize their expenses and get warnings and recommendations about areas where they may be overpaying.
Additionally, using those features, users may divide larger objectives into more manageable monthly savings targets.
Deal with the particulars of financial strain by providing workers with the resources they need
Giving workers individualized financial support might show them that you are paying attention to their requirements.
70% of workers believe they would be willing to accept personal financial assistance from a financial expert at work, according to Morgan Stanley.
Make use of the assistance provided by your benefit providers. Most of them give webinars and other forms of communication to workers. Make sure you ask your providers about their offerings.
Recall the human element
Carl Jensen, owner of Compare Banks encourages more human contact. He shares: “By enabling us to consistently and in accordance with best practices and provide relevant, individualized advice, technology is changing the financial services industry.
Nothing, however, diminishes the value of a human advisor who can establish rapport, trust, and a relationship in order to facilitate behavioral change.
It’s time to provide everyone with the financial guidance and resources they need to take charge of their financial circumstances.
Thankfully, a large portion of the required technology already exists and is becoming better every day. Therefore, it’s critical to provide these answers to the staff at this stage so they may begin their trip.”