Does aid in employee finances increase productivity?

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Does aid in employee finances increase productivity?

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Productivity helps the company to grow more, and to make its professionals optimize their time in an optimized way. Thus, the results grow and the organization can develop everyone, organically and collectively. Except that financial stress can put this all to waste, and it is important that your HR understand how helping with employee finances increases productivity.

Many people are still surprised by the idea that help with employee finances increases productivity. After all, many believe that this issue is private and individual, and that it is not part of the corporate routine.

Only this is very, very far from the truth.

In the end, stress is present in 80% of the employees' routine, according to a report by the The American Institute of Stress. And a lot of this has to do with financial stress in people's lives.

As a consequence, the problem is established in the daily life of your company, with low productivity, motivation and engagement, in addition to relationship problems and a dangerous increase in the turnover rate.

Let's see, then, how help with employee finances increases productivity – and what to do about it? Just follow through with this reading!

What is financial stress?

Did you know that a large part of UK citizens are stuck to overdraft? This is because this loan model tends to be an automatic mechanism, from financial institutions, and is triggered as soon as the bank account goes into the red.

Only that convenience comes at a high price – literally. High interest rates make people get out of debt quickly, but accumulate new expenses (now, with banks).

How does helping with employee finances increase productivity?

Consequently, this generates the dreaded financial stress. It is the frustration, the worry and the lack of patience resulting from a situation that never seems to be resolved.

And that's where help with employee finances comes in to increase productivity. After all, the problems mentioned above convert to low productivity, motivation and engagement in the company.

It is not a neglect of your employee: stress is not an object that can be left at home. He accompanies his employee all day, including, while he should focus on his corporate responsibilities.

Not to mention the countless physical and psychological problems arising from this. Because, as it is more and more advertised, there is a great relationship between health and financial stress.

What is the solution pointed out by the companies?

In response to this growing problem, in society, many HR specialists have focused their attention on practical ideas to promote the well-being of their employees. Thus, the concept of financial well-being emerged.

That's what this is about: solutions to minimize the harmful effect of financial stress, and convert the employee's negative routine into something more valuable.

By value, understand that everything starts with improving this situation promoted by indebtedness. And, by natural consequence, their professionals become:

  • more productive;
  • more engaged with the company's objectives;
  • more motivated to work and grow together with the organization;
  • more interested in remaining on the staff.

Externally, help with employee finances increases productivity in another way: by attracting talent. What creates more value for the organization and takes it to a new level.

In addition, it is worth noting that the financial problem is a constant among UK citizens. In a SEBRAE research, it was shown that 77% of self-employed professionals, with an income of up to R $ 81 thousand per year, did not know how to deal with their own finances.

No wonder, it is important to guide and compose financial education for people. It is an investment, after all: the more professionals absorb the concepts and techniques, and run away from debts, the better their daily performance will be.

What actions can be taken?

Helping employees' finances increases productivity, as we have seen. The question is: how to do it?

Below, we have gathered some of the best practices that the market has developed, and accumulated interesting results. Check out!

Offer financial education

Some measures can be used in this regard, such as:

  • lectures with experts in financial education;
  • workshops on the subject;
  • participation in events;
  • gamification with simulations of financial problems to assess the decision making of each one.

With these practices, it is possible to identify the main problems faced by its employees, and to initiate a more personalized assistance process.

After all, there is no point in considering investment options, for example, if your employees are still unable to save their income. It is important, then, to know exactly what they are facing, to solve the problem and then broaden the range of options.

Do surveys and meetings

The subject tends to be delicate. Therefore, sending surveys can be elementary to understand the real problem of your employees. Thus, it is easy to compose an action program that generates help in the finances of employees and increases productivity.

Create a financial wellness program

Above, we mentioned the financial well-being program, which involves the activities already mentioned, but it can go beyond that.

Some examples that seek to offer quality assistance to its employees:

  • emergency reserve that can be agreed with the employee and saved directly and automatically from the payroll. Thus, it will be used only in emergency cases;
  • pension plans, in which the company encourages savings by depositing the same amount (or more) than the employee in an investment plan;
  • individual financial aid plans – usually made in partnership with specialist companies;
  • debt renegotiation based on partnerships, too, but now with financial institutions.

It is also worth highlighting an issue that is increasingly popular in international companies – and with high interest in the international market. This is the on-demand salary.

With it, the employee gains more flexibility to request a salary advance of the days already worked. That way, he doesn't have to wait for paydays, preventing an emergency account from putting him on the overdraft.

In fact, the HR Consultant UK has been working tirelessly on this type of solution. The idea is, precisely, to make companies understand that help with employee finances increases productivity – and that there is no need to weigh anything in their logistics or budget.

For this, in April of this year, the HR Consultant UKy – HR Consultant UK's on-demand salary solution. We have an article that explains, in detail, the benefits of HR Consultant UKy for the employee and your company. Take the opportunity to have a look as soon as you finish this reading.

And, if you want to know more about this type of subject, aiming to promote the financial well-being of your staff, here is our invitation: like our page on Facebook and follow us on Instagram and LinkedIn so that all our tips and news navigate through your timeline – in addition to connecting with other professionals who may be experiencing the same situations as you!


HR Consultant UK can help if you have any questions about Does aid in employee finances increase productivity?
. Our HR consultant in London can assist you if you live in London. Suppose you live further afield thats not an issue! Visit our HR Consultants Near Me page to find the best consultancy nearest to you.
See you next time!



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