What steps can employers take to support the financial …
The following is a guest post written by Alex Kostecki, chief revenue officer at Clair, a financial wellness benefit company.
We get it — conversations about employees’ finances can be uncomfortable. However, as their employer, you are likely the primary source of income for your employees. Plus, it’s likely that you are already having conversations with them about their funds in some form, whether they be about compensation, pay advances, or bonuses.
Financial anxiety is one of the leading causes of stress among employees, so if they’re worried about their finances, they’re probably not performing as well at work. This is why HR professionals need to make it a priority to care about their employees’ financial well-being if they want to keep them engaged, productive, and happy, both inside and outside work.
Key reasons why HR managers should prioritize employees’ financial well-being
- Increased employee engagement – Employees who feel secure about their financial future are more likely to remain engaged and productive at work.
- Reduced stress – Money-related stress can affect employees’ ability to focus, leading to decreased productivity and morale.
- Improved retention – Employees who feel financially secure are more likely to stay with their employer long-term. This can help reduce turnover costs, as finding and onboarding new employees is expensive.
- Cost savings – When employees are financially secure, they are less likely to need to access costly, high-interest solutions, like payday loans. This can help employers save money in the long run.
- Happiness and loyalty – Employees who are financially secure are happier and more loyal to their employer. This can lead to improved morale, engagement, and productivity.
Tips for how HR managers can support employees’ financial wellness
There are several steps HR managers can take to ensure employees’ financial well-being, from offering flexible spending accounts and employee assistance programs to providing financial literacy classes or workshops and preventing any form of financial discrimination. With the right resources, guidance, and support, HR managers can create an environment where employees thrive financially. Taking these preventive measures can help protect employees’ financial future and improve overall performance, morale, and retention. Here are some tips:
- Offer flexible spending accounts, such as health savings accounts or dependent care spending accounts.
- Create an employee assistance program that offers free financial counseling, budgeting tips, and access to financial workshops.
- Provide access to different retirement savings options and educate employees on the importance of saving for retirement.
- Offer financial literacy classes or workshops to help employees better understand credit, debt, and taxes.
- Review employees’ benefits package to ensure that it includes financial protection benefits, such as life insurance, disability insurance, and emergency savings.
- Encourage team members to set financial goals, track their progress, and celebrate their successes.
- Create a company policy that prevents any form of discrimination based on an employee’s financial situation.
- Leverage financial tools and technology to help with all the items listed above.
HR professionals play an important role in supporting employees’ financial well-being. Taking the time to provide the support and resources needed to ensure financial security can help create a more engaged and productive workforce. Learn how here.