Your employees’ biggest financial problems and how to help

Your employees' biggest financial problems and how to help

Table of Contents

Most people struggle with money, and this sooner or later affects their professional lives.

The stress caused by debt causes employees to lose focus and even force their resignation to get the severance pay. Therefore, it is essential to know the biggest financial problems of your employees and how to help.

With that in mind, we've put together in this article everything you need to know to promote your company's financial well-being. Want to know more? Stay with us!

What are the most common financial problems among employees?

In a survey of UK residents Association of Financial Educators (Abefin), 2,000 employees from one hundred companies were interviewed. Between them, 84% said they had difficulties dealing with the money, suffer losses or not understand finance.

The effects of this on work are also proven by numbers. A survey by Blue Numbers shows that professionals with this type of problem spend even 1 hour a day on the phone or email in debt negotiations.

But after all, what are your employees' biggest financial problems and how can you help? Check out the details about each of them below.

Expense loss

Most people don't control how much goes in and how much goes out of the bank account. Without realizing it, they end up spending a lot more than they earn and they start to face problems because of it.

Many people do not set aside a part of their salary for the basic expensess, such as rent, electricity, water and supermarket. In this way, they spend most of their salary on leisure and have no money for the bills.

A good way to avoid this situation is to put the monthly budget in a spreadsheet, notebook or application. So, the person knows exactly how much they can spend for each purpose, avoiding uncontrolled and unnecessary debt.

debt accumulation

You can be sure that the debt accumulation it is among the biggest financial problems for its employees.

O credit card it's the overdraft are the biggest villains of personal finance.

It's very easy to make an impulse purchase to pay for the next month, or use the auto loan as an extension of your salary.

But interest rates are the highest in the market, which makes small debts turn into huge debts.

The concern with interest, installments and what to do to pay off the debt cause a high stress on the person, which makes their work income drop drastically.

Loans and financing

Loans and financing they are often needed to start a small business, buy a car, or buy a house. However, many people take this type of credit without any planning.

This causes the person to be taken by surprise at times and find it difficult to pay the installments.

At the same time, the basic expenses keep showing up month after month, and the whole situation can become a snowball if there is not a minimum knowledge about personal finance.

emergency expenses

You emergency expenses they are probably among your employees' biggest financial problems.

After all, everyone has to deal with unforeseen events from time to time. It could be an illness in the family, a car accident, or even an unexpected trip.

All this demands extra expenses, so the ideal is to have a emergency reserve for these situations. Otherwise, the person will have to spend what they don't have and will incur new debt, whether through a loan, credit card, or overdraft.

This is always bad news, as high interest rates can increase the debt amount in a short period of time.

How can the company avoid employees' financial problems?

Many companies put aside the financial well-being of employees, not realizing that this is a fundamental factor in productivity and team satisfaction.

In order not to make this mistake, it is possible to take some measures such as:

  • Implement a financial education program;
  • Offer a good benefits package;
  • Make payments per day;
  • Maintain adequate remuneration;
  • Create a career plan.

Check out all the details about these actions below.

financial education program

Implementing such a program helps you understand your employees' biggest financial problems and how to help.

The initiative involves the diagnosis of each employee's spending profile and targeted content to help them with their difficulties.

It can be in the form of online classes, lectures with experts and even the coach accompaniment.

This creates a structure of support and instruction for employees, who learn to better manage the resources they receive and respect the limits of their standard of living.

The company also benefits from this, as the team starts working with more pleasure, focus and tranquility.

Benefits package

A good benefits package can help solve your employees' biggest financial problems.

offer advantages that replace everyday expenses, such as food stamps, gasoline allowance or day care allowance for parents of young children.

Thus, the person does not need to use the salary for these purposes and can better organize their budget.

on-demand payment

Another trend in organizations is on-demand payment. In this system, the employee has the option to redeem part of their salary at any time, without having to wait for an official date.

So, it has more control over money itself and the expiration dates of your accounts.

Adequate remuneration

not always the financial stress it has to do with the value of the salary, but it is undeniable that this factor has a great influence on the employee's perception of the problem.

This can even increase the company's turnover, as many people in this situation seek other opportunities or simply force layoff for termination money.

So, value your team and offer the best salaries you can for each position.

A good tip is to study the market and keep values ​​at or above average. Thus, you gain an advantage over the competition and manage to retain the best talent.

Career path

To have career path for employees it is also essential. In this way, the person knows that they have a chance to grow in the company and earn better remuneration, even if they are dissatisfied with their current salary.

Just deliver the pre-established results and recognition will come in the future.

Now that you know your employees' biggest financial problems and how to help, it's time to put what you've learned into practice. Diagnose the financial situation of employees, learn about the difficulties of each one and draw up an effective plan to help them. Thus, everyone's quality of life will increase, along with productivity and business results!

Diagnose the financial situation of employees, learn about the difficulties of each one and draw up an effective plan to help them. Thus, everyone's quality of life will increase, along with productivity and business results!

If you liked the post, leave a comment with your questions and opinions. Tell us how you handle the financial well-being of employees in your company!


HR Consultant UK can help if you have any questions about Your employees' biggest financial problems and how to help
. 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.
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