Your financial wellness program may not be enough
Your employees may experience financial difficulties that cause anxiety, guilt, and even anxiety in the workplace, regardless of income level or financial literacy. These feelings often go unnoticed, but manifest themselves through workplace distractions, decreased engagement, employee burnout, or even effects on their mental and physical health. It may be worth researching the financial wellness programs you offer to help you distinguish between a financially literate and a financially empowered staff. This is important as the difference often lies in their willingness or confidence to perform. Financial literacy statistics are alarming and include, among others:
- About 85 percent of Americans are worried about their finances, and that fear directly affects their job.
- Financial stress contributes to lost productivity, increased absences and health problems, higher turnover and the rising costs that workers who cannot afford to retire early can afford.
- Employee financial health and retirement solutions solutions enable employers to build a healthier, more productive workforce while building a solid foundation for a healthier, more profitable business.
While business leaders are not required to deal with the problems of financially illiterate or financially disenfranchised employees, they can benefit from addressing the problem head on. Here are four ways investing in financially empowering your people can make a difference in your company.
Commitment – Employees who are concerned about their financial well-being may have difficulty being fully present at work. By addressing this focus, you in turn create more engaged staff. It’s the difference between an employee who shows up and does the bare minimum to get a paycheck, or an employee who shows up with a desire to expand, grow, and take part in unpaid initiatives that keep the company moving forward. In addition, an employee’s engagement can be contagious. Without the distractions that come with financial trauma, you can be sure that your employees are doing their best and encouraging others to do so.
Employee Retention – Three things motivate employees to leave their jobs; Leadership, pay, and growth opportunities that come with both. While your hands are tied about how much more salary you can offer an employee given the scope and function of their role, you can certainly help an employee feel more confident about their current salary by addressing issues they may be facing Make you think it’s just not enough. When topics such as rising debt, life events such as marriage, birth and retirement, or the misuse of income for hopeful expenses such as lottery tickets or gambling are at the forefront of the employee focus, you can be sure that they will take the opportunity to leave for greener pastures that are ill-prepared to cope with the adjustment that comes home with lifestyle inflation due to higher wages. This can lead to costly recruiting and onboarding efforts, while disrupting the flow of production, which can affect overall employee morale.
Diversity and Inclusion – Diversity, equity and inclusion have an increased strategic focus in many organizations. With efforts aimed at supporting, highlighting, and empowering historically disenfranchised populations, a focus on financial empowerment should complement those efforts, as many in the target audience do not have a background that models what financial wellbeing should or could be like. Often times, they are leaders in their families and communities in terms of education, income, and careers. It can be both exciting and stressful to be first of all, and with that burden comes guilt, anxiety, and anxiety about making the right decisions at the right time for yourself and your families. As a leader, you would be doing your company and your employees a disservice by accepting the principles of diversity, equality, and inclusion without considering the very real need for financial empowerment and financial wellness programs to improve the financial situation of those who do You want to improve. Not only does this have an incredible impact on the number of employees you oversee, but it also has a tremendous impact on your brand as a company by fully applying a diversity, equity and inclusion strategy that includes financial empowerment.
Pay It On – Financial literacy is at the forefront of much discussion in both the professional and education industries, with programs that teach their viewers what to do rather than discuss why they don’t. They offer the retirement plan, the employee share purchase plan, the HSA or FSA, and maybe even a stock ownership plan, but you still have employees who aren’t taking advantage of the benefits. Financial literacy can solve the how, but not the why. Your employees may have experienced a financial trauma that they simply cannot overcome in order to make the right decisions with their money, and because it’s a taboo subject, they never discuss it. Financial literacy addresses the underlying issues that affect mindset and behavior at all levels of the organization. This means that leaders and leaders can not only address their own financial problems, but can also work with the less senior managers and offer mentors who will prepare them to be successful as future leaders and create an internal ecosystem that enables holistic growth promotes that goes beyond political power and title. , and into the factors that affect production, engagement, loyalty and representation that DE&I strives for. Money management is mindset management and a financial empowerment program can improve the bottom line of your company and your employees.
Written by Rahkim Sabree.
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