Over the past few years, more and more companies are humanizing their practices. There is a concern to ensure the needs of employees, so that they have more quality of life, are engaged in the business and find 100% of their potential.
In this sense, one of the aspects that deserves the most attention is the financial dignity of employees. After all, money is the main cause of stress in Brazil, according to a Black Rock research. Therefore, taking care of this issue can be a great differential to build loyalty and conquer new talents.
With that in mind, we explain in this article everything you need to know about financial dignity, from concept to practical application. Want to know more? Check it out below!
What is financial dignity?
Financial dignity is being able to earn your own money, pay the bills and have moments of leisure without going through degrading situations or the lack of basic items. This involves receiving wages without delay and earning enough to save or invest a portion, with an emergency reserve always on hand.
Once that stage is reached, the worker can live in comfort, take a vacation regularly and set out in search of the next step: financial independence.
In addition, because the finances are in full control, the person does not accumulate debts, which avoids problems such as dirty name and difficulty in accessing credit.
Reaching this level should be basic for everyone, but in practice, this is not what happens. One of the main reasons is that many companies still subject their employees to bad working conditions and below market wages.
Another factor of great impact is the fact that financial education in Brazil is almost nonexistent, which means that most people do not know how to control their own money.
How does the lack of financial dignity affect people’s lives?
When a person lacks financial dignity, he has to deal with debts, charges and even a lack of basic items for daily life, such as food, water and electricity, among others.
With that, a great financial stress, which causes several problems in personal and professional life, such as the ones that we will see below.
Impacts on mental health
Living without financial dignity destroys self-esteem from anybody. She starts to live constantly with feelings of insecurity, frustration, anguish, discouragement and guilt, which can trigger several serious health problems. mental health, like depression.
Lack of concentration
Financial problems consume the thoughts of a person in this situation. This generates lack of focus in everyday activities, which can cause a drop in job performance and even accidents.
The lack of financial dignity also negatively affects a person’s mood. The state of constant irritation it can change the way a person treats his co-workers and family members, creating relationship difficulties.
How to guarantee the financial dignity of employees?
Having employees with low financial dignity can harm the company’s results. After all, the well-being and quality of life of employees are essential to building an engaged and high performance.
When their basic needs are not met, professionals are unmotivated. For this reason, it is essential to implement measures that help to promote the financial dignity of everyone on the team, as we will see below.
A living wage is the basis of financial dignity. It is he who will ensure that the person has the resources to pay his bills, have food on the table and have a good time with his family and friends.
This does not mean that all employees of the company need to have very high wages. The market defines the value of each professional and this must be respected.
However, it is important to keep in mind that the lowest salary that the company pays must be enough for anyone to live with dignity.
You benefits help a lot to compose a fair remuneration. Often, the salary is not even that high, but the benefits are so relevant that they meet many of the basic needs of employees.
As stated earlier, the level of financial education in our country is very low. This makes a lot of people fall into traps such as the excessive use of credit cards, overdrafts and exaggeration in installment purchases. This is how abusive debts and interest arises that undermine financial dignity.
Financial education initiatives in companies can help to avoid these problems. Invest in courses, lectures and content about pfinancial planning, emergency reserve and basic investment tips. Educating employees is also a way of ensuring the financial dignity of the team.
>> To learn more about the subject, check out this other blog post:
Financial education in the company: why should you invest? <
Financial dignity may also be in less obvious details, such as how to pay your salary. In recent years, a new remuneration alternative has emerged that increases the financial control of employees: the on-demand salary.
In this modality, the person you don’t have to wait for a fixed payment date to receive the salary, being able to withdraw the value of the days already worked in the month at any time. And just make the request through the app and the money will fall into your account right away.
In this way, the employee is able to more accurately plan the payment of your expenses. In addition, he does not run the risk of running out of money by the due date of the accounts; or needing to use overdraft in an eventual emergency.
Now that you know what financial dignity is, it’s time to put what you’ve learned into practice. Remember: employees invest time, effort and a lot of work in the company’s day-to-day activities. So, when the organization is concerned with the quality of life of its employees, it is investing directly in the success of the business.
Did you like the article? Tell us in the comments how your company invests in the financial dignity of its employees. We are available to answer any questions you may have on the subject.