Financial wellness affects every area of life. When we are barely able to meet our basic needs with our salary or are struggling to pay back debts while staying afloat, it causes stress and demands our immediate attention. When we are able to meet our needs easily and have a little left over, it allows us more freedom to focus on less immediate issues and lessens our stress levels.
When employees are in difficult financial situations, it can affect their productivity, job satisfaction, attitude, behavior, and development. They may need more money to live comfortably, but stress may keep them from fully focusing on being the best at their job and working towards a promotion. Addressing employee financial wellness may benefit your workplace while also doing something that will benefit your employees for the rest of their lives.
Student Loan Benefits
Some employers have started offering student loan benefits that put a certain amount of money towards the repayment of loans each payday. This benefit takes away the stress of figuring out how much to pay towards the loan each time and provides a repayment plan that can make the debt seem less overwhelming. This benefit is an attractive offering that may make a job with your company more appealing to top talent struggling with student debt.
Student debt isn’t just a problem for recent graduates, either. Many older graduates are still struggling with debt from years earlier and parents may struggle with their children’s debts. Student loan benefits can help employees in all of these situations.
Tuition reimbursement can help employees prevent accumulating debt in the first place. Employers may benefit from having their employees sharpen their skills. Employees must pay out of pocket for courses, but employers will reimburse them for certain courses that relate to the industry as agreed upon ahead of time.
Personal Finance Education
Offering personal finance education can help employees both prevent and manage debt, while also providing them with general money management skills. Personal finance education helps employees address their own specific financial situations, so it can be more beneficial than blanket options. Having someone available to review their budgets and financial concerns and offer tips can create a foundation for good financial health.
Competitive Pay and Benefits
While pay isn’t the only factor in employee financial wellness, it certainly makes a difference. When employees make a competitive wage, they may be less likely to seek out other companies in the industry and will be more likely to live comfortably. This can take care of immediate needs, while benefits can provide a buffer and allay concerns about the future and potential financial obstacles.
Merit Increases and Rewards
Providing merit increases and periodic incentives or rewards for good performance can help employees continue to improve their situations. They will be more loyal to your company if they feel that they are being fairly compensated for their time and that you care about their wellbeing – including financial wellbeing. Employees may start to become complacent or unsatisfied if they go too long without a raise or other reward, so consider increasing wages at least twice per year.
Good payroll software may help you help your employees with their financial wellness by simplifying the process involved in offering these types of programs and systems. If you’re looking for new payroll software, let us help you.