There is no shortage of data showing that stress at home leads to stress at work and lost productivity. At least 90 million Americans have no emergency savings. Stress leads to increasing healthcare costs, absenteeism, and turnover. All three of those lead to a big cost for businesses. The PwC 2018 Employee Financial Wellness Survey found that 54% of employees are stressed about their finances. A 2017 survey from Mercer estimated that employee financial stress costs employers $250 billion per year. The study found that roughly 5% of all payroll may be lost to unproductive time due to financial stress and fragility. If you employ hourly workers, you may have an even bigger risk of productivity loss due to financial stress. And if any workers do leave, hiring and training new employees is another big cost. But there is something you can do to help your employees improve their finances that has nothing to do with their wages. It just takes a commitment to help your valued employees turn their finances around.
Financial health comes from a combination of resources and skills, and most workers don’t grow up in an environment where they pick up the core money knowledge they need for success. Offering new financial education opportunities and resources can be a low-cost opportunity to make progress with a complex problem. With PayActiv, for example, employees get access to wages they have already earned but not yet been paid for a low $5 fee per pay period used. That might help them pay a looming bill without the expense and inconvenience of predatory payday lenders. PayActiv also includes features to help employees save and budget so they make the best money decisions no matter where they are. This benefit comes at no cost to employers and all features are free outside of the early wage access service. In addition to PayActiv, many businesses offer education classes, access to computer-based financial courses during work hours, and access to finance professionals for a one-time financial strategy session. The possibilities are endless. With PayActiv, you have an easy place to start at no extra cost to your business.
Whether you employ one employee or one million, building strong, trusting relationships with your team is vital to long-term business success. If you go above what your employees expect when it comes to offering them financial support, you can increase employee engagement while decreasing turnover. That’s a serious win-win that can alleviate employee stress while adding to your bottom line.
When you own or manage a business, your financial focus is likely on the bottom...