Are financially stable employees more productive? Should your staff’s financial wellness be a priority for your business?
The short answer: Yes.
It’s understood- employees have a lot on their intellects, right? And why wouldn’t they? The jobs they perform for you are extremely important.
When you consider them at their desks, laser-focused on that computer screen, you just know the wheels are turning and they’re deep in thought about work.
Any minute, they’re going to give you the latest detailed information about how they’ll coming to an end that big project. Snag a new leading. Close one more deal.
But actually, what’s got their attention may be none of the above. Instead, you know what they could be thinking about?
Money. And the fear of not having enough, or not making good use of what they have.
Don’t think your employees’ cash-flow problems are any of your concern? Actually, their financial situation can affect productivity and your bottom line.
Take a look at how an employee’s fund problems can affect an entire department or organization. Then, explore a few tips you can use to help your employees feel more financially secure and improve engagement.
Employees’ money problems are also your problems
Financial security equals confidence. And when you boost your employees’ confidence, they will typically perform better than employees who absence confidence.
So, when individual employees have personal stressors, like money concerns, it can affect the quality of their work. They may become more distracted and stimulate careless missteps. Also, it could lead to less social engagement with other employees.
For instance, a group of squad members may go out to lunch. One employee may not join them because they don’t have the money to enjoyed the jaunt. Or, an employee may change their behavior and stop pitching in for parties, group gifts and more.
Their co-workers’ perception may be that they’re being anti-social or inexpensive, when in fact government employees is just not comfortable sharing their money conflicts and personal business.
When an employee is worried, unproductive and can’t afford to participate in group activities and outings because of finances, it not only affects the person but the team as a whole.
Addressing the issue: Where to start
While you may not ever know the full extent of an employee’s financial positions, there are things you can do to help them on their journey to fiscal wellness. Start by offering a solid benefits package that includes a great portfolio of health insurance options to choose from.
This alone can help ease some of your employees’ money concerns because they will have the opportunity to get things like medical insurance, disability, flexible spending accounts, retirement program and more.
With so many options, they won’t have to keep themselves up all night know … … if an illness or collision could ruin them financially.
Here are 5 styles you can help your employees is more and more financially stable 😛 TAGEND 1. Provide a tool to help take the guesswork out of benefits enrollment
Sometimes, employees are so afraid of a health crisis, or simply don’t know what to choose, that they end up making a fear-based decision and select a more expensive scheme than they truly need.
Take purchasing car insurance, for example. Oftentimes, people will pay more monthly for automobile insurance so they can get a low deductible, usually $500. However, if they crunched the numbers, they could be paying more than $500 a year in higher premiums just to have the lower deductible. This is a decision based on the fear that they will get in an accident and have to come up with more than $500. The reality is that they may be better served with a higher deductible and lower monthly cost.
That’s why, when offering access to health insurance benefits, it can be helpful to provide an easy, question-and-answer tool employees can use to drill down and determine the type of coverage they actually need. Simple questions, such as “How often do you go to the doctor? ” or “How many prescriptions do you take regularly? ” are common examples.
This way, when making their elections, individual employees can feel certain they’re choosing coverage based on their actual needs instead of choosing the scheme with a level of coverage they may never need.
2. Offer disability insurance for added peace of mind
Life can happen in an instant. It could be a happy moment such as the birth of a child, or a more painful situation like an accident. In the event an employee is unable to work for a period of day, they can have peace of mind there is some level of income replacing available to them during their absence.
By offering short-term disability insurance, you let new moms to go on maternity leave and still get paid percentage points of their income. If an employee is involved in a non-work-related collision that prevented from being able to do their job for a while, short-term disability insurance will fill in some of the income gap. Plus, when their short-term disability insurance runs out, long-term will kick in if they need it.
When you offer employees with disability insurance options, they’ll feel confident their fiscal well-being will be protected when faced with the unexpected.
3. Make a 401( k) plan available to them
For some employees , nothing’s scarier than thinking about the future and knowing they have nothing saved. They may spend countless hours worrying about how they’re going to survive in retirement. This fear could easily distract employees and stimulate them ineffective at work, especially as they age.
When you offer a 401( k) plan, individual employees will feel more guaranteed about their own future. As they watch their savings grow, they will not only gain greater confidence in their ability to build wealth, but ensure the possibility that they can have a comfortable nest egg down the line. Also, offer “the employees ” match, if possible, on percentage points of their pay. They’ll have even more money at retirement thanks to your company, plus you’ll receive a tax benefit. Everybody wins.
You may find that some employees are hesitant to join a 401( k) because they don’t understand how it runs or feel intimidated about opting investment funds. The good news is, with many 401( k) plans today, they don’t have to know the ins of outs of expending. A solid 401( k) plan has tools to walk employees through the process and offers monies that expend to achieve results geared towards a particular retirement year.
While 401( k) savings are entailed for employees to use at retirement, there are times when employees need access to their savings. If “youve had” employees dealing with true financial hardships that are crippling them with fear and preventing them from doing their jobs, having access to their 401( k) may be the answer. Many 401( k) schemes allow employees to access their savings through loans, withdrawals at an age earlier than retirement age, and for certain qualifying fiscal hardships. Also, historically, the federal government will relax requirements when there is a event of natural disasters declared in a given region.
If the scheme allows these types of withdrawals, stimulating sure employees understand that they may have access in a time of need may encourage them to face their anxiety. It can definitely help them get out of a financial crisis and ease anxiety.
4. Promote the money-saving value of a flexible spending account
Employees may overlook the benefits of signing up for a flexible spending account( FSA) simply because they don’t realise the value in it.
Since money placed in an FSA account is use-it-or-lose-it money, some employees think they’re going to lose the money. But, with a little planning, the opposite is usually true. It’s an amazing benefit and so easy to use.
For example, employees know specific expenses they’ll have every year , no matter what. This could be a new pair of glasses, recurring prescription drug costs or copays, copays for regular physician visits, etc. They can put pre-tax fund away in an FSA, and when it’s time to fill a prescription, pay a copay or shell out money on new glasses, they can merely use the money that’s available in their FSA.
Also, use the FSA eliminates the need for them to figure out how they’re going to come up with a chunk of fund when they need to get that yearly eye quiz and glass. For instance, your employees will probably find it more convenient to have $35 subtracted from their monthly paycheck, rather than pay $500 all at once for something they knew they’d have to pay for during the year.
FSA contributions are subtracted before federal, state, social security and Medicare taxes are calculated. Employees save money by using their FSA contributions to pay quantities that they would otherwise pay with after-tax fund from their pocket. When you educate your employees about the benefits of an FSA, you help them save money, therefore adding another layer of financial assurance.
5. Don’t forget about an Employee Assistance Program
From creating kids to caring for aging mothers, everything costs money. And, for employees in the sandwich generation- where they’re creating kids and taking caring of their parents at the same day- money concerns are likely always top of mind.
It can be overwhelming- and sometimes, employees may simply need assist figuring out where they should start when trying to tackle life’s challenges.
Providing an employee assistance program( EAP) is a style you can help employees get the information and guidance they need. For example, when they’re ready to find out more about resources available to help them care for their parents, the EAP should offer access to elder care consultation services.
Or, perhaps employees want to create a will and need legal advice. They can be referred to an attorney and get a consultation.
Furthermore, someone on your team may even be looking to adopt a child and wants advice on how to get started. The EAP can point that person in the right direction.
Best of all, consultations are free so employees don’t have to worry about spending money or day searching for guidance on their own.
Want to provide individual employees with access to benefits that will give them peace of mind about their fiscal future? Download our free e-book, HR Outsourcing: A Step-by-Step Guide to Professional Employer Organizations( PEOs ), and find out how a PEO can help you tailor a package that’s just right for your business.
Read more: insperity.com