5 Ways Small Businesses Can Help Their Employees With Money

Regardless of how much people are paid, employers have a role in ensuring their employees’ financial well-being since a motivated workforce is essential to a successful business.

There will be times when workers encounter financial emergencies. After exhausting all other options without success, they should be able to seek help from their employers. However, many companies, especially those on a smaller scale, are unsure of what they can do to aid their employees.

Hence, we’ll discuss how you can assist your employees in money matters and evaluate whether or not these solutions suit your business’s needs.

Support With Repaying Student Loans

The U.S. Department of Education estimates that as of March 31, 2021, the total federal and private student loan debt held by borrowers in the United States was $1.6 trillion. As a result, student loan repayment programs are becoming increasingly attractive to prospective employees.

If new hires have large student loans, they are more likely to take out multiple bad credit personal loans, which may help them repay their student loans now. But will make it more difficult for them to repay in the future. So assisting employees in paying off their college loans could be a game-changer if you’re in the market for young, skilled workers.

If your organization doesn’t have a set fund for student loan payments, consider suggesting that employees pursue an income-based repayment plan instead. The monthly loan payment under this scheme is determined by household size and income factors.

It allows employees to pay off debt while meeting other financial obligations and demands. As a responsible employer, you should commit to providing employees with valuable resources to manage and completely repay debts.

Provide Financial Counseling

Stress in the workplace is often due to financial concerns. As part of a comprehensive financial wellness program, providing employees with access to financial counseling can go a long way toward relieving the burden of financial stress in the workplace.

If your company offers a complete financial wellness program, you can help employees feel more confident and ready for anything. Counseling can help workers relax and cope with their workloads. It can even help employees boost retirement funds. What’s more, it can also assist workers in improving their credit scores. As a bonus, it can aid in the process of paying debts.

It’s the best foundation for a healthy worker’s wallet and a great way to show employees that you value them as individuals and as assets to the business. Overall, this is beneficial to staff morale and the quality of the workplace.

Salary Benchmarking

If businesses want to attract and retain top talent, they need to assess the salaries they provide their staff routinely.

Salary benchmarking positively affects morale because it promotes transparency and fairness in the workplace concerning wages and benefits. People working for the company are happier when they know they are paid the same as those working for competitors. In this way, benchmarking contributes to employee retention.

Furthermore, salary benchmarks assist in identifying the most effective salary strategies for various positions or roles to entice qualified candidates. Job seekers may be more likely to apply for a position at your company if they see that you provide a desirable wage or benefits package.

Set Up a Discount Program for Employees

Employee discount programs help workers get more out of their paychecks and improve their financial health. They are most important when they provide discounts on items or services that employees use frequently.

In addition, discount programs for workers increase retention rates. This is because they demonstrate that their employers care about them as people outside of the scope of their work. As a result, employee discount plans, especially with other benefits, are appealing ways to attract and retain top talent and attract a larger pool of applicants.

As an additional perk, they can provide staff with resources that boost their health and happiness. One example is savings. Savings are significant when used for maintaining health that people may have trouble affording otherwise.

Offer Flexible Work Schedules

Today, employees regard schedule flexibility as one of the most significant perks they want from their companies.

Employees with more flexible work hours can skip the daily commute. As a result, they won’t have to spend as much on gas, work outfit, or lunch breaks every day. On the other side, employers can also reduce their overall spending with this setup. They can cut costs by reducing the size of their workplace space and utility consumption.

Moreover, businesses that enable employees to set their schedules often increase employee morale and productivity. Also, it can aid in the retention of skilled workers.

Final Thoughts

Employee financial wellness is becoming increasingly important to businesses. When workers are not worried about money, they are more invested in their job, producing better results at the workplace. To maintain a healthy relationship with your employees, start normalizing discussions about money issues in the workplace. Help your employees by applying the strategies above.