Stretching Each Dollar: The Importance of Employee Financial Counseling

Did you know that personal finance is the leading cause of stress in the United States? Providing your employees with resources, such as financial wellness programs, can help reduce stress and increase productivity. As an employer, what can you do to support your employees so that they can see a future with your company? Here are some tips to help your employees feel secure in their career paths through financial training.

How Financial Stress Affects Your Business

Stress can have a large impact on the overall productivity of your business. Some challenges include increased absenteeism, a higher rate of staff turnover, a decrease in the quality of work, and a negative impact on co-worker relationships. Remote work can also be to blame for causing additional challenges for employers. Balancing your employees’ needs and wants has become more important than ever. 

Stress affects everyone differently. In 2021, 65% of employees reported that financial stress caused them to have a lower productivity rate. This results in lower performance from employees which can ultimately alter overall business growth. Time and resources that are spent on employees who may not be performing up to the company standards, could be contributing to a steady decrease in profit over time. Helping employees manage their financial obstacles while prioritizing their overall wellbeing could result in saving a significant amount of money each year.

Maintaining Physical and Mental Health in the Workplace

Mental and physical health issues can also become underlying reasons as to why your employees are not meeting the productivity goals set by your organization. By reassuring your employees that they have the resources available to them to help meet their mental and physical needs, they can feel a bit more at ease. 

One way to do so is by offering an Employee Assistance Program at a reduced cost to employees. Providing these resources can help prevent burnout and improve employee retention. Consider hosting a virtual educational session where employees can have an open discussion. Use this time to answer any questions that your employees may have. Topics to include may range from general budgeting, how much to contribute to your 401K, debt management skills and tips to stay productive and motivated while working from home.

Employee Retention

In the midst of the Great Resignation, it is more important than ever to have an open line of communication with your employees. To support them beyond a typical benefits package, consider additional incentives. For example, if you require in-office attendance, you might offer relocation packages as part of an employee’s benefits. Moving is notoriously stressful. So, whether you’re promoting an employee, they are requesting to relocate or you are hiring someone new, providing your employees with financial resources such as how to get preapproved for a mortgage can help relieve some of that stress. 

Growing companies need to bring together qualified teams and workers. Competitive benefits such as career development opportunities, and financial wellness packages can further incentivize prospective employees by acknowledging their personal and financial goals. Financial stress can impact every employee, and therefore will have a direct impact on how your business operates as a whole. Being able to provide your employees with valuable resources in order to help lessen their stress not only financially but in various aspects of their lives can help improve their productivity and your overall success.