Why Business Owners Need to Address Employee Financial Stress
Productivity is king for business owners, but there are a number of factors that could affect employee effectiveness that is sometimes overlooked, such as financial health.
The reality is many business owners believe the only responsibility they have to their employees is safety and a good paycheck, but leaders recognize the need to take things a few steps further. The financial woes afflicting employees can have detrimental effects on their ability to be productive.
Why Does Productivity Suffer?
Employers should know that financial literacy is not as common as they might imagine, especially in certain places in the country like Nevada. Data shows that a lot of people in this state are struggling financially and do not have a firm grasp on their credit scores. This means many people in the state are likely struggling financially.
Financial woes can stress an employee out, and this stress does not subside simply because this worker clocks in for work. This kind of stress hangs over someone throughout the day, making it harder to concentrate on specific tasks. Obviously, a distracted employee will be more prone to making mistakes, and that could be costly for the company.
Distraction is not the only outcome of financial stress. Employees also lose sleep due to these kinds of financial struggles. Good rest improves cognitive functioning, long-term memory, and even mood. It is not hard to see how this could end up hurting productivity.
It should also be pointed out that lack of sleep affects the body’s overall immune system. A compromised immune system is susceptible to all sorts of bacteria and viruses. Employers might see a trend of absentees due to lack of sleep, not to mention that some of these individuals might infect other valuable employees.
What can Employers do for Employees?
Employers can take a number of steps to try to make things better for their employees. At the moment, it is estimated that about two-thirds of employers offer financial literacy courses and support to their employees, so a lot of people are attempting to do right by their workforce.
Employers can help employees learn more about effective budgeting and how to crawl out of debt. This country praises debt by promoting things like car loans and home mortgages, but debt can be crippling. Good financial literacy courses can combat bad debt by offering employees the necessary tools to either eliminate debt altogether or at least use it in a way that does not stretch them too thinly.
Good budgeting skills can help employees create a good safety nest or emergency fund. It is no secret that may Americans cannot handle an emergency of more than $500. This reality may haunt many people, including some of the people working for others, and it might create the kind of stress that could hurt productivity.
Financial literacy will also help employees understand how to save for retirement and their children’s education. Obtaining this kind of information makes it a lot easier for employees to feel content at work and actually produce quality work. It should be pointed out that taking such an active interest in the well-being of employees could end up creating even more loyalty, which all business owners know is pretty valuable.
Employers should also be ready to offer all sorts of tools to employees who are struggling with some financial woes. For example, one financial woe that affects many people is tax debt. Business owners should establish an open door policy that lets employees feel comfortable enough to share their lives with the owner or a representative who can refer employees to the proper form of relief, such as tax relief services in this case.
It is easy to see why an employer should assist in the financial stability of employees. No one is saying that it is the employer’s responsibility to solve everyone’s problems, but it is a wise investment to offer education that could help employees willing to help themselves.