Tips for Supporting Your Employees Through a Financial Crisis
Today we’re talking financial wellness programs at work:
Financial Wellness: How to Support Your Employees
Businesses aren’t the only ones dealing with the economic side effects caused by the coronavirus.
With the recent increase in layoffs, furloughs, and unemployment, your workers could be struggling to manage their finances.
As an employer, there are many ways you can help your staff through an emergency.
By creating specific initiatives to help improve your employees’ financial well-being, you can create a happier, more productive workforce.
1. Educate Your Staff
With many Americans living paycheck to paycheck before the economic downturn, some of your employees could be faced with unexpected financial issues.
Debts like student loans, car payments, or mortgages can potentially cause additional problems if a family member or spouse is suddenly unemployed.
To help your workers survive this financial crisis, you could offer free education to gain financial wellness. Topics could be how to save money, paying off debt, and improving credit scores.
Financial literacy is one of the most essential skills your employees can have. Personal finance training for employees doesn’t even have to be that expensive.
With knowledge about how to deal with debt, retirement planning, and budgeting, your workers will be inspired to improve their situations. You can even help your workers by encouraging them to use a financial service that allows early paycheck deposits.
That way, your staff has less time between checks and can pay bills on time.
Teaching your employees money management skills shows them how much you value their financial well-being and wellness.
When it comes to financial wellness, more than 1/3 of full-time employed Millennials, Gen Xers, and Baby Boomers, have less than $1,000 saved to deal with unexpected expenses according to PWC.
2. Offer the Right Benefits
Providing benefits like discounts on gym memberships, free meals, and on-site childcare are excellent for the wellbeing of your employees.
Still, when it comes to dealing with financial hardships, these perks perhaps won’t do much good.
Instead, you may need to focus on establishing some new benefits that will help your workers deal with a crisis.
If your company currently doesn’t offer health insurance, you may want to consider giving this benefit to your staff.
Affordable healthcare programs aren’t only helpful to your current employees.
This benefit may even help you attract new talent.
Other perks like tuition reimbursement, retirement savings plans, and debt counseling are also great for employees who are struggling with financial problems.
The right perks and benefits will have a significant impact on your workers’ happiness.
How can you find out what would really help your employees with their financial wellness?
Take the time to ask your employees.
What benefits would they like you to offer?
3. Build an Employee Assistance Program
How can financial wellness be improved at your workplace?
While financial education and benefits can help the majority of your staff improve their situations, some may need additional support.
Directly help your workers in need by creating an Employee Assistance Program (EAP).
An AEP can help with many personal issues. Not just financial hardships.
Difficulties like addiction, relationship problems, and emotional concerns can all qualify an employee for assistance. Most EAPs work by giving your staff access to a certified expert to help with their specific problem.
Counselors can help with alcoholism, drug abuse, mental health, and personal relationships.
For financial troubles, you can also provide monetary assistance to employees dealing with emergencies. These could be caused by medical concerns, natural disasters, and accidents.
So there are several ways that you can set up your EAP.
You can run the program yourself or have a third party provider set up the whole plan for your workplace.
Either way, most EPAs cost about $2 to $5 per employee. The price depends on the number of services you provide to your staff.
No matter how you decide to create an EAP, do some research beforehand to determine the best way to get started.
4. Promote a Culture of Well-being
What’s the value of a healthy workforce?
Creating a culture focused on your workers’ well-being won’t only help those struggling with a financial crisis.
Mental and physical health is an essential part of every employee’s work-life balance.
Encourage your staff to be their happiest and healthiest selves – it can create a more productive work environment.
Whether your workforce is remote or in an office or factory, make an effort to prioritize their mental health.
Remind your staff to take frequent breaks, or go outside during their shift break. Remind them to use their vacation days, and ask for help when needed.
Physical health in the workplace should also be a focus.
Keep your staff active. Use fun fitness competitions, group outings, walking-meetings and on-site classes.
Advocating for your employees’ well-being not only shows them how to take better care of themselves, but can also boost retention, morale, and reduce absenteeism.
If you continuously measure employee mood, the data can show if your improvements are having the desired effect.
Thinking of starting a Financial Wellness Program?
Supporting your workers through a financial crisis is crucial.
When your employees are faced with hardships, their work performance will suffer.
Help them overcome financial difficulties by offering education, benefits, assistance, and a healthy company culture focused on their well-being and happiness.
Hej! I’m Rebecca, co-founder at Celpax. We manufacture simple tech tools to improve workplaces. And build a better society while at it. Let’s talk about tips for financial wellness on Twitter?