Improve Loyalty by Helping Employees Deal with Financial Stress

It may well be an employer’s market when it comes to selecting from a sea of possible candidates, but the value of keeping talented, knowledgeable, and engaged employees isn’t easy. Loyalty and trust must be worked on consistently and deliberately.

With so many conflicting stressors and distractions in an employee’s life, it may seem challenging what to address first. Following the results of the 2020 Sanofi Benefits Survey where personal finances at 39 per cent reflect the number one cause of stress for Canadian workers, this seems to be a good place to start. 

Like an iceberg where the bulk of the mass is under the waterline, stress related to finances can consume an employee’s thoughts, beliefs, and behaviour in ways that aren’t openly discussed or immediately apparent. Unacknowledged and unsupported, this stress may create significant hardship for the employee and the organization. 

Check out this 14-minute TED Talk with Financial Coach, Tammy Lally, entitled, Let’s Get Honest About Our Money Problems.

The reality is that no one wants to talk about their money problems, but they continue to worry about it. This ongoing worry leads to mental health issues such as depression and anxiety. 

What is Financial Stress?

According to the Financial Health Institute, it is a “condition that is the result of financial and/or economic levels of scarcity, and is accompanied by a psychological stress response.”

According to the 2021 PwC Employee Financial Wellness Survey, finances are the top cause of employee stress — more than job, health and relationship stress combined. Sixty-three per cent of employees surveyed said their financial stress has increased since the start of the pandemic.

A Personal and Organizational Drain

As with mental health, there remains a stigma associated with financial stress. People would rather talk about any other topic rather than discuss their financial woes. Unchecked, this type of stress leads to poor health and lifestyle choices, fatigue, headaches, insomnia, irritability, lack of concentration, higher rates of absence, and more. Financial stress is a personal and organizational drain.

Employers Can Provide Answers

While it isn’t the primary nature of an employer’s business, taking care of their employees provides a direct and positive correlation to taking care of customers. Employers can provide resources, education, and financial support to stem the tide of this unspoken form of stress. 

Information and Education Build Loyalty

Here are some tips to foster employee loyalty through information and education that are intended to reduce and eliminate financial stress in your workplace.

• Provide the basics. Offer foundational information about budgeting, credit cards, debt management and investing. Many people did not have an opportunity to learn basic financial skills in school. It may seem embarrassing to acknowledge a lack of knowledge so providing education could be a quick and easy way to close an education gap.
  
  There are many free online resources available. Please read our blog, The Value of Financial Wellness Programs, for details and links to some of these key resources.
  
• Put aside a small budget to fund apps and online courses. For as little as $30 per employee, you could provide them with the opportunity to access budgeting apps (i.e., Goodbudget) and online courses through sites like Udemy (they offer thousands of financial education courses  — many under $20) that provide important financial education training that is outside of the employer’s purview and may supply the employee a greater sense of confidence and privacy.
  
• Ensure diversity and inclusivity in your approach. Offer a multi-pronged approach that factors in the sensitive nature of the topic as well as knowledge levels, language barriers, cultural, and demographic considerations. 

• Share a list of financial coaches, advisors and banking services that offer free support. Being able to talk to a certified financial coach or advisor provides a window for employees to have a confidential, third-party conversation about their financial concerns.
  It can be the needed first step to positively change the trajectory of their situation.
  
• Review your group benefits program. Talk to your group benefits advisor to discuss ways to optimize your plan for employee choice. You will increase employee loyalty by providing a plan design that allows employees to have a greater say in how their benefit dollars are spent.
  
  – Are employees able to get items paid when their coverage gets maxed out? (i.e.,vision and dental coverage)
  – Do you provide payroll deduction programs and student loan repayment programs?
  – What are the usage stats for your Employee Assistance Program? Does it include financial coaching and education?
  
  These are just a few questions to consider. Please contact us at info@primebenefitsgroup.com to discuss other considerations to optimize your group benefits program.
  
• Remind employees they are not alone. Provide stats about financial stress, resources, and ways the entire family can learn about financial preparedness and basic budgeting skills. It is never too late to learn and there are many free, online tools to make this an immediate tip easy to implement in your workplace.
  

Move Beyond RRSPs and Retirement Planning

When you invest in the matters that worry your employees the most, you show you care and it fosters an environment of trust and loyalty that is immeasurable. Address employees hidden pains by making resources easily accessible, fun, and free. 

When employees feel more financially prepared, they will be more confident, focused and productive. It is a win-win situation for employee and employer. 

We’re here to help you. Please contact us at info@primebenefitsgroup.com. Let’s work together and create solutions that work best for you and your organization.