How to Actually Help Your Employees
Okay, okay—we’ve covered a lot of ground so far. Stats, the CARES Act and shady refinancing schemes are all swirling around your head, and you just want to know: How can you really make an impact for your employees?
Take a minute to consider the money struggles that many folks deal with. A lot of them don’t have the cash on hand to cover an emergency, and even more are living paycheck to paycheck.1, 2 You might be thinking, If my employees are making good money, they should have more cushion than those who make less, right? And it’s easy to think that, but it all comes down to financial behavior.
For most people, the more they make, the more they spend. A good salary just isn’t enough to make bad money habits go away. Even for people who earn lower salaries, income often isn’t the root of their money troubles—it’s things like debt, living outside of their means, and using credit cards.
So, when we talk about the student loan debt crisis and how desperately borrowers need to pay off their student loans as fast as they can, don’t miss that the real solution will require behavior change. The real problem can’t be fixed with a student loan employer repayment plan alone. Sure, that’s an awesome way to help workers, but they need a plan too. They need the right tools and resources to achieve financial wellness. Without it, their money will always have control of them. That’s not good for them—or for your business.
So, what is financial wellness?
Have control over their day-to-day finances.
Have enough cushion to handle most financial emergencies.
Are out of debt and able to manage their expenses without swiping a credit card.
Are on track to meet their savings and retirement goals.
Look, 60% of Americans are stressed about money, and 50% of employees report that they spend between one and five hours per week thinking about that stress while at work.3, 4 This is a big deal! This kind of lost productivity can cost you thousands every year. How many of your employees are bringing that stress with them every day—and what’s it costing your business?
Financial Stress in the Workplace:
And what can you do about it now with the economy the way it is?
Remember when we asked you to imagine your employees finally free from student loan debt? It was a beautiful picture! They were engaged and efficient, not distracted or stressed by their money situations. They participated more in the company 401(k), missed less work, and stuck with your company for the long haul. It sounds like a pipe dream, but we want to tell you: It’s possible.
But you need a plan.
1. Federal Reserve, 2019
2. CareerBuilder, 2017
3. American Psychological Association, 2019
4. Colonial Life, 2019