There are different ways to improve employee finances, whose actions have a positive impact not only on the financial health of each of its employees, but on productivity and engagement, within the company. To this end, HR must consider which strategies are best suited to the profile of the people who work there. And, among the main ones, we will highlight the following to the logo of this post:
- Design financial education programs;
- Partner with financial institutions;
- Try to understand the individual needs of employees;
- Encourage healthy financial habits;
- Create differentials within your corporate benefits.
There is an intimate relationship between health and financial stress. The more concerned and indebted, the more your employees participate less in the company’s growth. That is why, more and more, companies have considered new Ways to Improve Employee Finances.
Through these strategies, the employee regains his economic breath to balance his finances, create assertive plans according to his income and expenses and, with that, the financial stress is reduced.
Not for nothing, this is reflected in more quality of life, well-being, productivity and also in gratitude to the company.
Let’s see, then, what are the main ways to improve an employee’s finances? Just follow us with reading this post!
Why consider ways to improve an employee’s finances?
As we highlighted above, an employee who lives with the financial stress it takes these symptoms into the workday. He can hardly leave this problem at home.
After all, financial stress comes with many negative qualities, such as:
- difficulty concentrating;
- low productivity;
- absenteeism and presenteeism.
Over time, management and HR tend to observe that these professionals who do not earn or strive to improve their performance no longer serve the company’s staff.
And it is clear that the increase in turnover only harms the company: more costs, direct and indirect, and other harmful indexes until the new professional is fully integrated into the new routine.
In this way, a type of investment that minimizes these unnecessary expenditures has become popular: ways to improve employee finances.
Through them, the organization places itself as an auxiliary element in the fight of this professional against indebtedness. When the problem is, at least, heading towards its resolution, the employee can return to render everything that is expected of him – and even more.
What are ways to improve an employee’s finances?
Below, we highlight 5 ways to improve employee finances. Something that improves the organizational climate, as a whole, and further enhances your company’s reputation in the market!
1. Design financial education programs
Many UK citizens are tied to overdraftcurrently, and this is partly due to the lack of quality financial education for people.
This is because, when the individual is not concerned with maintaining an emergency reserve for unforeseen events, for example, the overdraft it becomes the fastest alternative (and automatic, since banks tend to grant it without bureaucracy). Except that it is also very expensive.
And, consequently, the only thing that happens is that your employee has replaced one debt with another – probably at even higher rates. And the debt accumulates, as well as the stress and its problems arising…
You can see where this is going, right?
With financial well-being programs, your company starts to invest in financial education solutions to improve these negative rates.
It can be, for example:
- consultancy with specialized companies;
- lectures and training on the subject;
- workshops focused on raising the awareness of its professionals.
Among other modalities that offer concise ideas for your employees to have more control over the balance between their respective incomes and expenses.
In fact, to learn more about the problems that overdraft can cause in people’s lives, we made a very complete article about this type of loan. Take the opportunity to have a look after this reading!
2. Partner with financial institutions
Is your company affiliated with any financial institution? If so, how about taking the lead and proposing, to the manager with whom you have the most contact, some ideas to help employees get out of debt.
It can be a simple debt renegotiation or even loan and financing facilitations. Thus, with better terms and rates, your employees gradually move from a risky situation to a more controlled moment.
3. Try to understand the individual needs of employees
It is important that you suggest ways to improve an employee’s finances – as long as you understand what the problem is that affects each employee.
For example: if the general difficulty is to make the salary pay by the end of the month (and this is motivated because everyone consumes unrestrainedly), financial education can be more beneficial.
Now, if the problems accumulate in bigger debts as a result of real estate and auto financing, the idea previously mentioned may make more sense.
For that reason, HR can go deeper into the problem to identify what is the best solution to solveindividually, which has caused financial stress in people.
One way to do this is through individualized meetings or by filling out a form that can be sent by e-mail to those responsible for HR.
Just remember that this is a sensitive issue for most. Consequently, must be treated with discretion, without judgment and with a total focus on solving the problem.
4. Encourage healthy financial habits
How about distributing, on the company’s walls, some practical tips to save money? Or, even offering free materials that make the employee learn more about how to make his salary pay better?
These are more simplified activities, but they can already contribute to the establishment of a greater awareness regarding financial education.
5. Create differentiators within your corporate benefits
Some companies are betting on the retention (allowed) of a fraction of the employees’ salary for the creation of an emergency reserve fund. Others go further and build a joint pension plan: the employee deposits a monthly amount, and the company does the same.
This works as a huge corporate benefit. However, in addition, there is a modality that impacts the company’s payment flow even less, and adds more flexibility for the professional.
This is the on-demand salary. With it, the employee can request the desired amount, within the available credits of days worked, to avoid using the overdraft, for example.
With the salary on demand, people acquire more autonomy over their own resources, starting to use them strategically so that the salary pays until the end of the month – and, who knows, about something to make an investment in the short, medium or long term?
At HR Consultant UK, this solution, which is one of the main ways to improve employee finances, serves for HR Consultant UKy – and it not only improves the quality of life and well-being of employees, but also adds benefits for your company, you knew?
But, to take the first step in that direction, how about sharing this post on your social networks? Appoint your HR colleagues, and start a pleasurable discussion so that financial stress becomes less and less of a problem in our society!
HR Consultant UK can help if you have any questions about 5 Ways to Improve Employee Finances
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See you next time!