When you own or manage a business, your financial focus is likely on its bottom line. While it’s important to follow prudent financial strategies when running a business, it’s also wise to consider your employees’ finances.
Helping your employees better manage their finances is often a low-cost endeavor that yields outsized results for both workers and their companies. Here are important reasons why you should care about your employees’ financial health and an idea of how you can take the first steps to help.
Just as it’s sometimes impossible to leave the stresses of work behind when heading home at the end of the day, sometimes stresses from home can creep into the workplace. Studies show that financial stress can drag down productivity at work.
For example, in a 2017 study from PwC (PDF), 22% of employees admitted that financial worries had impacted productivity at work, and 12% have had to miss work occasionally due to financial worries.
Of employees stressed about their finances, 48% said finances had been a distraction while at work, and 50% said they spend at least three hours a week at work thinking about or dealing with personal finance issues. If you can turn those hours into productive hours, it should come back to benefit the business.
In the same PwC survey, 28% of employees surveyed said financial worries had impacted their health. If you can put a financial wellness program into place that improves the health of your employees, it can help the business in multiple ways:
One way to lower employee financial stress is to take out the immediate strain of bills coming due. Earned Wage Access from PayActiv gives employees access to wages they’ve earned have yet to be paid. This can help workers avoid late fills and missed bills that lead to more costs and stresses.
According to data from the Federal Reserve, about 40% of Americans couldn’t pay for a $400 financial emergency from savings. A survey from CareerBuilder found that 78% of Americans live paycheck to paycheck, including 9% of those who earn a six-figure income.
Between improved productivity and lower costs, it’s clear how a business can benefit from employee financial wellness. A small investment in your employees outside of payroll may lead to huge results for both employees and the business.
But those benefits are not only about boosting profits. There is a human aspect to helping your workers as well. Managers and business owners can feel good about their workers succeeding both in and out of the workplace. Those happier workers may be more likely to stick around and work hard for the company’s long-term success. Programs that benefit employees often come back and offer a win-win opportunity for everyone involved.
Small to midsized businesses may think that employee financial wellness programs would be great, but the cost tag puts them out of reach. That doesn’t have to be the case. For example, PayActiv offers a long list of employee financial benefits at no cost to the employer.
When your company joins PayActiv, your employees get access to an app that integrates with many popular payroll systems, like the one you already use today, to facilitate Earned Wage Access and other valuable benefits.
With so much to gain and virtually no cost to your business, offering PayActiv as a benefit could be an easy decision. Learn more today or set up an appointment to find out how easy it is to get your business set up with PayActiv.