Concern about finances is a factor that can shake many aspects of someone’s life. Cultivate Advisors has already addressed in an article the connection between financial problems and mental health, and this time, we will identify how debt negatively interferes with daily work and the importance of financial guidance aimed at employees.
Financial stress is associated with the fear of facing instabilities with money. A worker who already has extensive debts does not perform their duties with quality and, due to the lack of attention, becomes prone to possible risks of accidents at work. In addition to anxiety, physical symptoms such as insomnia, tachycardia, and depression can arise and disrupt the focus of daily production.
A survey carried out in 2019 pointed out that financial difficulty is the situation that most affects the emotional state of 34% of the 2,900 adults interviewed. Therefore, in the professional sphere, executives must pay attention to how much it interferes with productivity and find a way to help settle employee debts.
With this situation, companies are mobilizing to offer programs and consultancies to organize finances and resolve employee debts. The elimination of financial backlogs results in high worker performance, well-being, motivation, and a significant increase in productivity.
More than instructing an employee, it is essential that programs direct them towards concrete resolutions to financial problems. Before developing a project, there are specific issues that must be remembered. See the topics:
- Management and payment of bank debts
- Assistance in cost control
- Short-, medium- and long-term financial planning
- Negotiation of bank contracts
- Investment guidance
After identifying the key words to provide financial guidance, learn five steps for executing these programs:
1 – Identify What Each Employee Needs
The first step to developing a financial wellness program is identifying the employee’s priorities and difficulties. Choose to do internal research on debt, spending, and investments to analyze each person’s situation.
2 – Analyze What The Company Can Do
After conducting internal research, find out what your company can do for the employee. Review budgets and assess salary issues and benefits that are already available.
3 – Define The Main Benefits
With the analysis of employee and company profiles, decide which action should be prioritized—among them offering consultancy to eliminate debts.
4 – Get Employees Engaged
The next step is to publicize and get employees to participate. Create creative and motivating internal campaigns highlighting the company’s purpose.
5 – Track Performance
After all the processes are defined, see how the actions are performed and if the employee is calmer with the financial situation. Learn more about Student Loan Forgiveness here.