With the recession and inflation happening globally, employees are worried about their financial stability more than ever. They are now seeking guidance from their companies to help them maintain financial stability. By the definition of financial stability, it means the financial security of employees.
78% of the employees require support from their current organization to help them get through the phase of inflammation and financial instability.
This is why the requirement for financial training has increased in the workplace. The different generations think differently about training and the criteria for financial stability.
The employees are not able to meet their financial obligations, which is drastically affecting their mental and physical health. The issues that concern Millennials, Gen Z, and Boomers are vastly different, like the need for financial education.
With this article, we will see what employees expect of their organizations from a financial perspective and also how financial training is benefiting both employees and employers.
How is financial instability affecting employees?
1. Money-related problems are causing mental and physical issues
Employees often face mental and physical stress due to the money problems they face, this also impacts their productivity. According to external research, millennial and Gen Z employees are having more difficulty dealing with their money problems than Boomers!
This is why new generations require organizations to provide them with support for financial advice to keep their mental health in check as well.
2. Battling without help
Gartner suggests that only 13% of the organization are planning to increase their employees’ wages due to the inflammation. This has posed difficulties for the employees to deal with their basic requirements. They try to battle by reducing their expenses on various things like entertainment and travel. This varies according to generation and how they prioritize things.
3. Trying to cope in different ways!
The economic crunch has given employees time to rethink their financial decisions and think of methods that will help them save money and survive inflation. Employees are trying to reduce expenses, find better jobs, learn to manage finances better, juggle between many jobs, talk to a therapist, etc.
4. Decreasing productivity!
Often, employees go through a financial crunch, which impacts their productivity. Organizations that are unable to recognize this, put more pressure on employees than required because they are not performing well. This puts the employee in an exhausting position mentally, which might impact him physically as well. He may also lose the motivation to work at all, which will impact the organization’s growth in the long term.
What are the benefits of maintaining employee financial stability?
- Bolster productivity: this will increase productivity because the employees will not be distracted by any financial issues.
- Improved physical health: It will improve physical health which will eventually increase productivity.
- Better engagement: It will increase employee retention and engagement.
- Better opportunities for your employees: Create better retirement opportunities for the employees and also better career options for younger employees.
How can you enhance financial stability as an organization?
As an organization, it is your responsibility to take care of your employees and see if they are financially secure and stress-free. It is not always possible to raise wages, but there are multiple other things that you should consider.
Also, it becomes a necessity because leaving one’s job and searching for a new one is also one of the solutions that employees are seeking. To retain the employees, it is also necessary that you provide the financial security required by them.
Let us see ways wherein you can help your employees to achieve financial stability:
1. Match the benefits of your employees
Your employees can expect financial support for many reasons, like healthcare, education, recreational activities, etc. If you are unable to provide them with any salary benefits, you can provide them with such benefits.
You can provide them with benefits like health plans and pension plans, whatever matches their requirements. You must analyze what is popular with your audience and then come up with uniform policies to help the employees grow.
2. Improve their financial knowledge with proper training and guidance
Currently, less than 50% of the employees receive any type of financial training, and this number is quite less. If you are not able to provide your employees with any monetary benefits, you can at least some training programs to guide them well for better financial decisions.
Keeping in mind the financial wellness of employees is quite essential, you should know what will benefit your employees the most.
Provide them with resources in different plans so they can decide which one will work for you the best. This will help them make clear decisions in their financial choices.
3. Emergency funds
Most employees are ready to retain in an organization if their on-demand salary is met. You can also help your employees to build emergency funds that will help them face any difficulty or harsh conditions in the future. There can be funds like retirement or emergency funds, which will give them financial stability and also moral support.
4. New tools and currencies
Only 16% of the employees get training about new tools and currencies from their employers, which is quite a low number. You can make a difference by introducing these skills to your audience and helping them educate themselves on these new topics.
5. Make financial security accessible
Make sure your financial security is accessible to all of your employees. There must be equality in whatever policy you are distributing to the employees.
6. Promoting mental and physical wellness
Having medical benefits is one of the most desired benefits for any employee. Hence, to promote the good physical and mental health of your employees, you must have certain policies to benefit your employees.
What can you do as an employee?
1. Seek help
You can take the help of your peers or seniors if you are struggling with any financial matter. You can always ask questions to the relevant people whom you think will clear your doubts.
2. Maintain your finances
You can maintain your finances better by investing in various schemes and investing mindfully. This will help you make the most out of the resources that you have in hand.
If you are facing any sort of financial crunch, communicate with your team so they know your expectation. It helps you achieve your financial goals better and faster.
Try to actually help your employees and not just give them empty promises. Build policies that will help employees excel and gain financial stability.
Being a responsible organization, you must give your employees financial security and improve productivity for your company as well.