How to financially support your employees: The ultimate guide

Take a second to think back to high school. Does Maslow’s hierarchy of needs ring a bell? As humans, our basic physiological necessities come first, but right behind is the human need for safety and security, including financial security. 

Money worries keep employees up at night and affect their wellbeing and performance. Ignoring financial struggles doesn’t just hurt employees, it hurts organizations. 

As leaders, there’s both an obligation and opportunity: providing the financial security people need while driving growth for them as individuals and the company. This win-win is possible through compassionate solutions tailored to each employee’s unique needs. 

Our CEO, Pete, often emphasizes that increasing salaries is rarely enough. While raises temporarily ease stresses, they fail to address complex root causes of financial instability. 

The reality is 60% of employed adults, including 4 out of 10 high-income earners, live paycheck to paycheck, according to a recent LendingClub survey. It's common to need help with money these days.

But there is good news. More effective solutions exist when leaders show compassion. By listening, understanding unique burdens, and replacing money worries with empowering stability, leaders help employees thrive. 

Importance of employee financial support

Providing financial support and resources to employees will significantly impact recruitment, retention, engagement, and productivity. Employees who feel financially secure are less stressed, miss less work, and focus more on their job duties. Offering competitive pay, attractive benefits, retirement plans, discounted products or services, and other financial incentives demonstrates an employer's investment in their staff. This support will boost loyalty, morale, and workplace culture.  

Challenges in providing financial support for employees

However, providing meaningful financial support for employees does come with some difficulties that leaders need to address thoughtfully:

• Securing buy-in for expanded pay and benefits can be hard, especially for budget-conscious small businesses.  
• Creating comprehensive yet understandable financial wellness initiatives requires substantial effort and expertise.
• Ensuring equal access for diverse groups means applying an inclusion lens.
• Staying competitive demands keeping up with trends in the job market.
• Measuring returns of investing in talent can be complicated.
• Navigating personal privacy regulations also poses challenges.  

It's possible to overcome these obstacles with proper planning. Leaders who do so will reap rewards in performance, retention, recruitment, and employee morale.

How to support your employees' financial needs

Employers have an important role in assisting with employees' financial health beyond compensation. Companies can support the financial well-being of their workforce in various ways. Doing so demonstrates a commitment to employees as whole people with lives and responsibilities outside of work. Supportive employer policies related to time off, benefits packages, continuing education, and more can greatly relieve some of the financial strain today's workers face.

Now, let’s explore five impactful ways business leaders can assist when employees face financial hardship. Even small gestures can make a big, human-centric difference.

5 ways to financially support your employees: 

1. Financial education and 1:1 financial coaching:

There are several ways to offer financial education to your employees. Some of these methods include hosting webinars, hosting workshops, and inviting financial experts for lunch and learn sessions, etc. Providing your employees with ongoing education will help them understand budgeting, saving, and managing debt. It will also enable them to develop good habits and feel less stressed.

1:1 financial coaching provides a personalized approach to guide employees' financial planning. Employees receive tailored advice and support in achieving their financial goals by offering individualized sessions with a financial expert. This approach helps employees better understand their finances, make informed decisions, and develop a sustainable financial plan. Additionally, it will lead to increased employee satisfaction and loyalty and better overall financial wellness for the workforce.

2. Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs):

Healthcare expenses are a significant financial burden sometimes. By offering FSAs or HSAs, your employees can pay for medical expenses with pre-tax dollars. This not only helps in managing healthcare costs but also effectively increases their disposable income.

3. Retirement planning and contributions:

One of the best long-term financial supports you can offer is helping employees plan for retirement. Whether through a 401(k) plan with company matching or providing resources for retirement planning, these efforts show that you're invested in their future. It also encourages employees to think long-term about their finances, which leads to more stability.

4. Access to financial tools and resources:

Access to financial tools and resources is more helpful for employees than just providing them with money. Sometimes, the issue is not the lack of money but the need for proper financial management. By providing access to budgeting tools, financial tracking apps, or low-cost financial advisory services, employees will better understand where their money is going and find ways to save or invest more effectively. These resources make a huge difference in improving the financial situation of employees.

5. Creating a supportive work culture:

Lastly, creating an environment where employees feel comfortable talking about money problems and asking for help is super important. This could mean having regular catch-ups, forming support groups with colleagues, or simply being open to discussing financial concerns whenever they arise. When employees know there's someone they can turn to for support, it can make a huge difference in reducing stress and boosting morale.

Further education: How Your Money Line will support your employees

Financial education is crucial for making informed money decisions. Consider providing employees access to financial wellness programs like Your Money Line. We offer customized financial coaching, budgeting tools, debt management plans, and more through our team of certified experts. Our qualified experts take time to listen, understand, and provide personalized guidance to help employees manage expenses, pay off debt, and invest in the future. 

Providing debt relief, budgeting, and retirement planning services supported by cutting-edge software reduces financial stress. Employees feel valued and supported, fueling loyalty, engagement, and productivity. 

We integrate seamlessly with existing benefits programs while providing insights to help optimize offerings that best serve employees. Our platform measures program efficacy through surveys and metrics reporting for continual enhancement based on the changing needs of your employee population.

Interested? Watch a demo today. 

Conclusion: 

While increasing pay is often seen as the primary method of supporting employees financially, there are many other effective ways to help. By focusing on education, planning, and creating a supportive culture, you can substantially impact your employees' financial wellness. This benefits them individually and leads to a more engaged, productive, and loyal workforce.

Remember, financial wellness is a journey, not a destination. It requires ongoing effort and support. As an employer, you have a unique opportunity to guide and assist your employees on this path, leading to a healthier, happier workplace for everyone.