In this day and age, companies taking care of their employees are on the rise. Not only does it improve their reputation, but it also helps increase their productivity. Studies found that 77 percent of Americans worry about finances. Even those with relatively good jobs struggle with money mostly because they have a debt to pay or families to provide.
Although it would appear that this is not a concern of the company, stress from debt can affect their ability to work as well. In fact, four out of five admit that financial issues impact their work performance to an extreme degree. It prevents them from giving their full attention, and the stress is a hindrance when trying to come up with new ideas. This also causes them to become more sickly, which results in more leaves and poor performance.
Businesses nowadays make an active effort in helping them with their issues. This doesn’t necessarily mean salary increases and bonuses. Realistically, the process of giving a raise and justifying it would be long and complicated. However, here’s what you can do instead to help your employees.
Many companies offer what is called an employee loan. This is when you give part of their salary in advance, and it can be paid over a period of time with a certain interest. The employee pays back with deductions in future payrolls. You can give this to employees who are in dire financial situations to ease their burdens.
Normally, these types of loans are easier to do than with third parties. Qualifications can be fewer, and payments are automatically made through their salary. It can also help you retain valued employees with a good performance record.
When offering employee loans, there are certain things that you have to consider, though. One is the duration and the amount that can be loaned. You have to make sure that the amount will not become a huge loss if, hypothetically, the employee cannot pay or asks for an extension.
Financial Wellness Programs
One of the cheapest ways you can help employees in debt is by educating them. Financial wellness programs are prevalent these days. The goal is to teach them ways to increase their financial well-being and reduce debt. This is a great way to inform employees of the opportunities they can pursue, even when they are financially struggling. You can partner with specific organizations that will send established speakers for the programs.
Topics for these programs usually involve sessions on budgeting and investments. Others can get more personal, such as finding the most optimal mortgage rates or planning for sandwich generations. Speakers for these seminars are financial experts and consultants, so they can ask questions on specific situations that apply to them.
Student Loan Tools
If your employee expresses their desire for a different position but lacks the skills, you can offer to fund their education. It can benefit both you and the employee. The individual will feel that the company is invested in his career growth, and you will benefit from an employee with additional skills. Internal hiring is known to be a lot easier for the employer as well.
Another thing you can do is set up a student loan repayment as part of their benefits. Some convert paid time off into tools that help them pay off certain debts. These practices are a great way to show your concern and support to employees that are assets to you. Student loans are one of the most common financial issues that Americans face, and paying them can increase staff loyalty.