Are Your Employees Financially Unwell?
Would you believe it if I told you that 40% of employees who make more than $100,000 per year are financially unstable with less than three months’ savings? Let me paint you a picture.
Your top sales person has risen to the top over the past few years and is doing well! He’s making over six figures and has a new car, he just bought a house, got married and there’s a baby on the way. Seemingly, your sales person is living the American dream. What you don’t know is that your employee doesn’t know how to manage his money, and as his income grew his bills grew right along with it. That top tier college he went to? He’s still paying that loan back and he’s only chipping away at the interest. Your top sales person, who used to enjoy working is now just working to pay the bills. He’s become stressed, distracted, and even more frustrated when a sale doesn’t work out because his sales tie directly to whether or not he’s going to have to put his bills on a credit card this month. With the average American carrying a credit card balance of $6,375, employees can’t afford to be swiping for monthly expenses. Studies show that happy employees are up to 20% more productive than unhappy employees, and with financial burdens greatly affecting an employee’s morale, at home problems (e.g. finances) are now at-work issues.
You’re probably asking, what’s your role in all of this as an employer?
You’re paying him a fair salary, and you’ve given him the tools and resources he needs to keep making sales in the marketplace. If he has money problems, he should probably talk to a bank, right? Maybe, but what if you made it easy for him to schedule a meeting with a financial counselor right at the office? What if you contributed towards the student loans he has from the college degree you required to get the job?
We all know that employees are your company’s greatest asset, and while your benefits package may attract top talent, financial insecurity can be one of the top drivers of stress for an employee and can affect how they work, and whether they stay with you. The old school of thought suggests that paying an employee a salary should be where an employer’s consideration of their employee’s financial health ends. This no longer holds true. The wellness trend that surged onto the scene in the early 2000’s, picked up speed in the last decade and is becoming a crucial differentiator for employers. But wellness now goes well beyond physical health. Wellness 2.0 has moved employers to look beyond an employee’s basic work benefits such as health packages, office space, and salary, and look further at how they can support employees holistically to create a happier workforce.
Reducing employee stress can positively impact your health plan, boost employee productivity and increase employee loyalty. Salary Finance most recently reported that American businesses lose half a billion dollars a year because their employees are stressed about