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How to Relieve Your Employees’ Financial Stress

Let’s face it: life throughout the past year has been…stressful. Finance was indicated by 60% of employees as their primary stressor—and that was prior to the COVID-19 pandemic. Now that a vast majority of professionals find themselves working from home, financial stress has only become more prevalent with heightened utility bills, loss of work hours, and laid-off partners. 

The fact of the matter is that financial stress is not just a personal problem, it’s also a professional one. Financial stress can negatively impact productivity, healthcare expenses, employee retention, and not to mention, team morale. It is, without a doubt, in the employer’s best interest to create a foundation of financial well-being in order to get the most from their employees.

This article will discuss specific ways in which employers can support their employees’ financial well-being, helping to alleviate the financial stress that has been accrued throughout the pandemic:

More Money Is Not the Answer

Although your employees would most certainly appreciate a raise, this is only placing a bandage on the surface of financial stress. As Dave Ramsey states, personal finance is 80% behavior and 20% knowledge. Therefore, for long-lasting, life-changing results, a shift in the foundational behavior and attitude towards finance management must be made.

Financial literacy is a skill that must be learned through practical application and habit. When studies have shown most adult learning happens in the workplace, it seems that this knowledge may be easily interwoven throughout an employee’s professional routine.

Prioritize a Financial Wellness Program

It’s true: a business is only as successful as its team members. This is why we recommend personal development measures not only be offered by employers but greatly encouraged and supported. 

There are several different options when considering how to integrate a employee financial wellness program into your business, including:

Make it Personal

Employees might be hesitant to share their financial situation with the people they work with on a daily basis—that’s understandable, as finances are a very personal topic. The goal to alleviate this uneasiness is to create a safe and inviting environment in which employees feel comfortable sharing their experiences and seeking advice.

First and foremost, start with an employee survey regarding financial stressors, literacy, and management habits. Rather than basing your financial support programs off statistics you find on the internet, this survey will allow you to personalize your company’s approach. 

The next step is to ensure that leadership support is present in any financial management program your company adopts. This could look differently depending on your company’s culture but could include:

More Control, Less Stress

As a person of professional leadership, it’s your responsibility to support the well-being of your team members’ lives in and out of the office. As we mentioned, financial stress negatively impacts productivity and team morale, causing a lose-lose situation for both employer and employee. 40% of employees admit that personal stress affects their productivity at work…and that’s just those who admit it. 

With the right resources and support infrastructure in place, you can aid your employees while also realizing their potential. The more control your employees have of their personal finances, the less time on the clock they will spend stressing.

Southwestern Investment Group provides financial advising services with knowledge and integrity. Contact us today to learn more about financial wellness programs and how they might benefit your employees.

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