How Employers Can Help Employees Going Through Financial Hardships
While employers aren’t under any legal obligation to help employees who are facing financial difficulties, it is in their best interest to support staff. Financial stresses can significantly impact an employee’s focus, productivity, and performance at work. This can not only reduce a company’s profitability, but also harm relationships with colleagues and affect company culture.
With that in mind, let’s take a look at how employers can do more to support employees facing financial hardships.
Offer Access to Financial Resources or Education
Being financially literate is essential for effectively managing income. By offering advice or hosting financial workshops, employees can gain the knowledge required to budget effectively, maintain savings, and manage debts.
Remove the Stigma
Some staff members may find it difficult to talk about their financial difficulties. Creating a supportive environment where employees are encouraged to discuss financial wellbeing is essential.
It’s also important for HR teams to recognise the signs of financial stress and approach these situations with care and understanding while providing actionable solutions.
Bring Wage Reviews Forward
If you conduct annual salary reviews, you could consider bringing these forward for employees facing financial hardships so they can benefit from the increase in wage for longer.
Consider Performance-Based Bonuses
Performance-based bonuses are a win-win. Not only do they provide some financial relief for staff, but they can also encourage employees to work harder, ultimately leading to more profit for the business.
Offer Flexibility With Salaries
It’s not always possible for an organisation to increase the wages of their employees or offer bonuses. However by being flexible with salaries, employees can reduce the stress that comes with living paycheck to paycheck.
Whether it be a salary advance that bridges the gap between paydays or split payments that allow employees to spread their wage more appropriately, this adjustability can significantly lower stress levels for staff.
Implement Wellbeing Initiatives
It’s important to support employees going through financial struggles from a mental health perspective, too. Stress can significantly affect an individual’s mental health, so it’s important to take this into account. Mental health days or counselling services can help an employee’s stress levels while they focus on tackling their financial situation.
Prioritising Employee Wellbeing is Crucial
Financial stress can lead to poor work performance, job satisfaction, and productivity. But by supporting employees through these times by giving employees access to financial resources, removing the stigma and encouraging open communication, being flexible with salaries, considering monetary incentives, and prioritising employee wellbeing, you can create a better working environment for everyone.
