Financial well-being is not often addressed when planning a workplace well-being scheme, even though it is one of the key causes of strain for employees. As a result, an increasing number of companies are implementing financial wellbeing plans for their employees to help them get their finances back on the right track. Given this, it is crucial that we consider what it really means to be financially sound.
What Does Financial Wellbeing Mean?
Financial well-being pertains to the skills and expertise required to handle personal finances in a safe, stable way. It is a state in which a person could satisfy current and recurring financial commitments, feel confident in his or her financial future, and be able to make decisions that allow him or her to enjoy life to the fullest. Individuals with low financial well-being may be under pressure and experience high levels of stress.
There is no specific financial amount that someone needs to have in their bank account to be deemed financially well. Instead the definition of financial well-being is closely linked to a person’s sense of financial strain and assurance.
7 Ways to Help Your Employees in Financial Wellbeing
- Budgeting: A Fiscal Responsibility
Budgeting is an critical feature of financial management in all phases of life, but way too many people neglect on how much they invest in certain areas. With quick access to credit, investing a few hundred bucks over the budget will easily end up in debt to a household. By providing tools to help plan employees monitor their income and revenue, set budget categories, and control their development, you can enable them to make wise investment decisions and improve financial credibility.
- A Financial Literacy Program
For many, one’s primary financial education comes from family and often from peers. This means that some of the most popular money errors will unknowingly be passed around without any contemplation. For example, many assume that you need some consumer debt in order to get a high credit score. Others can deliberately defer their income tax in order to obtain a greater refund while at the same time holding high-interest credit card balances. A structured financial literacy education system will recognize these money errors (which many do not even know they are making) and provide recommendations about how to prevent or fix them.
- The Discount Program
A smart way to help employees get spare funds is to provide negotiated discounts on vehicle and home insurance, equipment and even local attractions. Many businesses are taking this step forward with a voluntary employee purchase scheme that encourages people to purchase household products and educational facilities by payroll deductions. This financial well-being services allow employees to take charge of their budgets by setting spending limits.
- Engagement and Wellbeing Together
It is important to keep an eye beyond conventional health, diet, stress, and sleep patterns to boost overall well-being. Support employees to get on the right track by portraying financial challenges they may encounter in the framework of your well-being or engagement plan. Make sure to outline precisely what they ought to do and reward your workforce for their efforts. Use a performance review software to track the performance of the employee & help them achieve the goals.
- Transform Your Culture
Being transparent about money can be especially challenging for someone dealing with an implicit sense of guilt or embarrassment. If this taboo is not confronted, the most vulnerable employees may be unable to deal with their personal finance problems. Find people on the team (ideally leaders or managers) who are confident discussing how they have solved financial challenges in the past, and allow all employees an opportunity to share these tactics and experiences together.
The path to recovery for our economic systems is a long one, and there are likely to be hiccups along the way. But having the financial wellbeing system in place would help your employees and your company, both, now and in the long term. Also, there will be goodwill for you as an organization for being proactive and offering educational programs to support your workforce. And while more productivity helps the bottom line, it also means that you’ll be able to retain your employees longer.