Important Tips for Investing in Employee Financial Wellness

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This post was guest written by Kim Thomas.

Your company offers competitive salaries and comprehensive benefits, but is there more you could be doing to keep employees productive and satisfied at work? While many managers view employees’ personal finances as outside the company’s purview, your staff’s financial health has a bigger impact on profitability than you realize. Dr. Lauren Cook presents some tips that can help you invest in this important aspect of your employees’ wellness.

Financial Wellness = Improved Productivity

According to research cited by United Concordia Dental, employee financial stress can greatly influence their work life. Even while they’re at work, money worries impact worker productivity, with 34 percent of employees admitting they spend time at work distracted by financial matters and sometimes dodging collection calls while on the clock.

In response to this knowledge, an increasing number of companies are implementing financial wellness programs for staff. To that end, consider offering.

Budgeting

Budgeting is the foundation of financial health. As such, it’s a smart place for a workplace’s financial wellness program to start. While most people recognize the value of a budget, less than half actually use one. Beyond covering the basics of creating a household budget, this program should emphasize simple ways to track income and expenses, such as using financial apps like Mint and YNAB that sync with banking accounts. 

You can also use apps and software that give your employees access to their pay stubs to aid in their record-keeping. Additionally, these programs also offer direct deposit (another great benefit for employees) and processing payroll automatically, which is very advantageous in today’s on-the-go business world.

Debt Management

Household debt is a leading source of financial stress, with many people relying on debt to stay afloat financially. Due in part to high debt loads, many households are living paycheck to paycheck with no actionable plan for repaying their debt. A debt management program can help employees distinguish between good debt and predatory debt like payday loans, learn how interest rates work and what to look for when applying for a credit card, and understand how to improve their credit score. A debt management course may also help employees learn strategies for paying down debt and using debt wisely.

Diversity and Inclusion

Workplace diversity and inclusion has a bigger impact on your company’s financial health, both in terms of individuals and the whole, than you might think. 6Q explains that improving your staffing in this manner is shown to reduce turnover, raise productivity, enhance creativity and even boost your company’s bottom line. Even your customers can expect better service. The end result is that not only can everyone be happier, but you can allow the financial gains to trickle down through raises and bonuses.

Retirement Planning

Once short-term financial concerns are addressed, it’s time to start thinking about the future. Retirement planning programs should include information about the details of your firm’s pension plan and how to choose between pension schemes for personal retirement savings. Since 46 percent of UK citizens have no retirement savings, it’s imperative that a financial wellness program help employees calculate what they’ll need to set aside for a comfortable retirement.

Real Estate Investing

While many employees are concerned with getting by, some employees are looking for opportunities to get ahead financially. High-wage earners in particular may be interested in programming on real estate investing. A smart choice for investors looking to diversify their portfolios, real estate investments provide both short- and long-term returns to boost income and build wealth for the future. A real estate investing course should cover the advantages and disadvantages of various real estate investment options, including commercial and residential rentals, fix-and-flip properties, and real estate investment trusts.

If you’re interested in financial wellness programs for your company but aren’t sure where to start, consider conducting an anonymous survey that allows your employees to share their top financial concerns. By understanding where your employees stand currently, you can develop the financial wellness program that best meets their needs. In turn, you’ll be rewarded with a loyal, focused workforce that shows up ready to give your firm their all.

If you enjoyed this article, you may also enjoy “10 Rules of Leadership to Build (And Retain!) The Best Team” by Deanna deBara.