One component of running a successful business is ensuring that employees are healthy and productive. Companies provide benefits that positively impact employees’ lives to do their best work.
Studies show that financially secure employees can take on challenges with more confidence and enthusiasm. Financial security also allows employees to take their minds off of money, clearing their brains for other tasks. Unfortunately, not all employees have an excellent financial standing, affecting their health and productivity.
75% of employees don’t have a financial plan to meet their short and long-term goals. A recent study by Forbes showed that 80% of companies recorded a significant decline in employee productivity due to financial stress.
Most people know that improving their financial wellness will make them more productive at work. Still, it’s hard for many because: a) they worry about what others will think if they ask for advice on money problems, b) they believe it’s too difficult to take control of their finances, or c) they haven’t found the right solution yet.
Financial stress among employees has real consequences for businesses, such as absenteeism, lack of focus and low motivation, affecting revenue and overall company growth. The good news is there are ways to reduce your employees’ financial stress, which can help improve their job performance and boost your business’s bottom line. Here are three ways to do it:
Financial Education – Educating your employees with proper financial materials can often eliminate the root cause of many money problems. Education can come in many forms — from simple workshops to one-on-one counselling with a financial professional. Earnipay offers Mint, a financial education coach that covers various financial topics, including savings, investment, debts, etc. With education, employees can make smarter financial decisions which alleviate the issues causing them stress.
Encourage Saving – Many employers offer emergency savings accounts (ESAs) as a way for employees to put aside funds for unexpected expenses. These accounts allow workers to save money tax-free and withdraw funds in an emergency. This is a great way to reduce stress caused by financial crises and avoid employee burnout due to mounting bills and debt.
On-demand pay – Employees are better equipped to manage their expenses and debts properly when they have access to their earnings as they work for it. Earnipay does this by partnering with employers to offer employees flexible access to their earned pay. This means employees can access up to 50% of the money they’ve worked for in their bank accounts before payday. This helps them stay within budget and avoid high-interest payday loans.
As a company that cares about its employees and the business’s overall success, prioritising financial wellness for employees has proven to save money and increase productivity.
At Earnipay, we are helping employers solve the most significant source of stress and distraction in the workplace. Employees can access their earned salaries at zero cost to your business without disrupting your payroll systems. It’s not a loan, so there’s no interest, just their earned pay whenever they need it.