Why is your team’s financial resilience more important than ever?

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Why is your team's financial resilience more important than ever?

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The emergence of the Covid-19 pandemic caused a large part of the population to be insecure about their finances. Stress has increased, fear of losing a job has increased, and financial resilience has become essential.

In the face of these adversities, professional performance was affected. For this reason, companies started to play an important role for employees to develop the so-called financial resilience.

She is nothing more than an ability to tackle financial problems without going into crisis. The resilient has the courage to face the problem head-on and then rise again.

But do you know what strategies the company can follow to help employees develop financial resilience? In this article we will talk about:

  • What is resilience ?;
  • What is financial resilience ?;
  • How can financial stress impact professional life ?;
  • What are the attitudes to not freak out in the midst of the financial crisis ?;
  • How to help employees develop financial resilience?

Do you want to develop financial resilience? Find out how to move on in this article.

What is resilience?

Resilience is the ability to deal with life's adversities, overcoming pressure, obstacles and stress. Resilient people have an ability not to focus on problems, but on possible solutions.

This is because resilient they have greater self-control and balance, regardless of the level of the problem. Since, they envision the issue to be resolved strategically without despair.

In the job market, 71% of executives point out resilience as one of the most important competencies in the market, showed a Accenture study. After all, these professionals have the ability to turn problems into opportunities.

But what about financial resilience?

What is financial resilience?

Now that we know what resilience is, let's imagine it in the financial context. Financial resilience is a term that describes the ability to deal with difficulties and unforeseen circumstances related to the individual's finances.

The resilient person, financially speaking, is able, in the face of lack of money or unexpected financial crises, such as that caused by Covid-19, to assume this reality and be willing to change it.

The secret of financial resilience is not blaming others for their own money problems. It is clear that several situations can influence this reality, such as the unexpected loss of employment or economic problems in the country.

However, being resilient is assume your own responsibilities, either by the failure or success, of your financial health. Financial resilience enables a person to have lucidity, patience and awareness that only he will be able to change the reality that presents itself.

What is the scenario of the crisis in financial life?

The Covid-19 crisis demanded even more from people the so-called financial resilience. Stress and fear have become dominant in the face of a market full of insecurity and uncertainty.

One research at the State University of Rio de Janeiro revealed that cases of stress, anxiety and depression grew 80% amid the pandemic. Many of these situations due to financial problems.

According to the National Confederation of Industry (CNI), 4 out of 10 UK citizens lost income in the midst of the pandemic. 23% admit that they have lost all their income and 15% say that they have become indebted.

This reality of financial stress hinders not only personal life, but also professional life, making it difficult for employees to concentrate and perform on a daily basis.

One Society for Human Resource Management research revealed that 83% of HR professionals put financial stress as one of the main factors that hinder productivity at work.

Other PWC research further states that financial stress is a distraction at work for 48% of professionals.

Given this, we can see the importance that the company has to develop financial resilience. So that employees can deal with the crisis and not be negatively affected.

How can financial stress impact professional life?

The concern about tomorrow, if there will be money to pay a certain bill, buy food or if the job will be maintained creates an environment of stress and negative anxiety in the employee, completely affecting his day to day at work.

But what other problems can financial stress bring to the company? Below we list some of the main ones:

  • Growth in turnover and absenteeism rates;
  • Low motivation;
  • Drop in motivation and productivity;
  • Increased stress and dissatisfaction with salary;
  • Increase in the chances of errors in the execution of tasks;
  • Decreased concentration due to concerns about finances;
  • High recruitment and dismissal costs.

What are the attitudes to not freak out in the middle of the financial crisis?

In the midst of the financial crisis it is common for many people to ignore previously defined goals or even lose discipline in the money control.

However, it is important at this difficult time to place financial resilience as a determining factor to overcome the crisis. Some of the attitudes that need to become habits to achieve financial resilience are:

  • Maintain self-control;
  • Flee from pessimism;
  • Admit the situation and the financial crisis;
  • Accept reality;
  • See the problem as an opportunity;
  • Do not act on impulse;
  • Avoid installment purchases;
  • Be responsible with the use of money in the midst of the crisis;
  • Get ready to start over.

How to help employees develop financial resilience?

Throughout this article, we realize the impacts that the lack of financial resilience can have in times of crisis, affecting not only personal but also professional life.

That's why, companies are facing a moment where they need to act strategically to help your employees develop financial resilience. The truth is that financial resilience has become more important than ever in the market.

But how can the company help its employees in this regard? Check out some tips below.

Creating financial education programs

To reduce financial stress it is essential that employees know how to control their money. Having tools to deal with your own finances brings financial resilience as a consequence.

In this scenario, the company can contribute by creating financial education for employees. Developing specific content on the topic and even taking experts on the subject to lecture or give workshops.

After all, who knows how to manage finances has more control when a crisis appears. If the company gives employees this opportunity to learn about the importance of finance and financial resilience, it is preventing them from financial stress.

This is because these employees will find it easier to control spending, plan the budget and even build an emergency fund for possible economic crises.

Offering individual advice

Another alternative to develop this financial resilience, which can be inserted into the financial education program, is the individual councils. Give employees the opportunity to chat with those who understand the subject to be able to deal with the crisis.

Nothing better than someone who knows the market and has the skills to overcome difficult moments to guide those who find themselves lost in the chaos. In this case, personalized advice can make a difference since each person's reality is different.

Good advice can make the employee maintain self-control and manage to overcome the crisis, seeing the problem differently.

This adaptation to what each one needs, individually, can help to develop financial resilience in employees, relieve tensions and reduce stress.

Betting on preventive relaxation therapies

With the financial crisis in place, the financial stress it is an obvious consequence in this scenario. If it is not possible to avoid it, the only solution is to face the problem head on, but with a warm head nobody solves anything.

Therefore, an alternative that the company can use to help its employees develop financial resilience in the crisis is through preventive therapies.

That includes relaxation strategies so that the employee can “disconnect” from their reality to think better afterwards.

Especially because in every 62% of UK residents professionals suffer from anxiety, according to research of the São Paulo Medical Association. In many cases, financial stress is the cause of this anxiety.

To change this scenario, the company can think of alternatives to offer employees such as yoga, massage therapy, meditation and even psychological assistance.

These actions can be carried out within the company itself or through agreements with these locations. Undoubtedly, relaxation therapies increase the employee's chances of reducing stress and increasing their financial resilience in the face of adversity.

Keeping the dialogue open between the leader and the employee

THE dialogue between the leader and his collaborators can be a way to identify possible problems that are impacting the team's productivity. In this mission to develop the financial resilience of employees, this action can help.

Not only to make employees aware that you care about their well-being, but to learn about their difficulties and be willing to help them.

This is what we call humanized management, which is constantly acting strategically to maintain the quality of life professionals.

Therefore, if you seek to keep employees motivated even in a possible financial crisis scenario, give them space to speak, keep the dialogue open, constant and are willing to help in whatever way they can.

Why does financial resilience help to overcome the crisis?

To answer the question of the title of this content, we present throughout this article the reasons for the financial resilience of the team to be a fundamental point nowadays.

Amid the coronavirus crisis, it has become more than essential to have emotional control to deal with possible financial mishaps over time. Dealing with market uncertainties, fears and etc. it is not an easy task if there is no financial resilience.

We also realized that the lack of it impacts not only the personal, but professional life of employees. Since, when there is no financial resilience, stress becomes dominant.

Stressed employees end up getting sicker, less productive, less motivated and tend to make more mistakes. Therefore, the company needs to face up to this situation. We have already talked about the importance of HR reinventing itself in times of crisis in another article, read it clicking here.

So, it becomes important that HR sees employees' financial crisis as an opportunity to develop financial resilience in them.

And in this article, we have given some alternatives to enable this ability to deal well with adversity and convert problems into alternatives.

If you liked our article, share it on social media and show more people about the importance of financial resilience in the job market.

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