As the economy continues to fluctuate, it stands to reason that financial pressure is a major stressor for many working Americans. According to Payroll.org, in 2023, more than three-quarters of workers (78%) were living paycheck to paycheck to make ends meet, which is a 6% increase from the previous year. In another survey, an incredible 29% of respondents stated that their income doesn't even cover basic expenses.
With this in mind, it's understandable that many employees feel financial strain and bring that stress to the workplace. This stress can affect their job performance and product quality. At CareerBuilder, we understand that employee well-being affects the whole team, so we created this guide on how companies can help employees with financial stress.
How financial stress can affect companies
When employees are stressed financially, their health and productivity can suffer. And while many claim to be experts at multitasking, if employees are focused on their financial problems, they're less focused on the business. Fortunately, you can ease some of the burden by helping your employees learn how to deal with financial stress and providing non-monetary benefits.
While you may not always be able to raise wages, there are additional perks or benefits you can offer to help employees who are struggling. At the end of the day, listening to their needs and tailoring benefits to meet them goes a long way.
Ways to help improve employee financial stability
There are many ways that companies can help improve their team's financial health. Below are some methods to consider.
Encourage a culture that welcomes financial conversations
As a leader, it's important to think about how you can foster a culture of conversation when it comes to money. In addition to encouraging employees to take advantage of the financial advice available to them, you could share educational content or set up financial workshops or other expert-driven programs where employees can feel free to ask questions in person.
Consider an employee assistance program
Employee assistance programs help connect your employees with the services they need. You can pay for a referral system or initial consultation meetings with financial planners, attorneys, or mental health experts. Providing employees with these resources gives them a place to start when seeking professional help and eases a large part of the financial stress they might be feeling.
"When employees are stressed financially, their health and productivity can suffer."
Provide onsite childcare
Providing parents with reliable, safe, and convenient childcare allows them to bring their young children to work, spend lunch and breaks together, check in on them, and leave together at the end of the workday. It gives employees peace of mind and saves them money on childcare costs, which makes it an effective recruiting tool and job satisfaction driver for working parents.
Allow employees to telecommute
Do your employees have jobs or responsibilities that they could easily perform from home? If so, why not let them telecommute? Even one day a week of working from home can have a dramatic impact on an employee's attitude and motivation.
Employees love it because it reduces expenses for childcare and gas and allows them to spend more time with their families. If you absolutely cannot be without your employees on a daily or weekly basis, consider giving them the option to work from home on occasion, whether it's every other Friday or as needed.
Offer educational assistance
The rising costs of college tuition can cause problems both at work and at home. Employers who offer tuition assistance programs may find their workforce is more motivated and less stressed. This can have other benefits too, as a more educated team is likely to add value as they progress up the corporate ladder within the company.
Benefits of supporting your employees
Supporting employees with financial services and comprehensive compensation-related benefits can yield significant advantages for a company. By addressing financial stress and offering valuable resources, companies can create a more engaged and productive workforce. This support not only fosters a positive work environment but also strengthens the company's reputation and appeal. Some benefits companies may experience from supporting their teams include:
- Enhanced job satisfaction
- Increased productivity
- Reduced turnover
- A more positive workplace culture
- Attraction of top talent
- Improved company reputation
Despite economic improvements, many workers remain financially stressed, living paycheck to paycheck and struggling with debt. This stress can hinder their health and productivity. Employers can help by fostering open financial discussions, offering employee assistance programs, providing onsite childcare, allowing telecommuting, and supporting educational expenses. These measures can reduce financial strain, boost job satisfaction, and enhance overall productivity, demonstrating a commitment to employee well-being and creating a more engaged workforce.
More tips for reducing employee stress
There are many methods to help support employee well-being in the workplace, which can drastically boost job satisfaction and productivity.
Finding ways to support employee mental health can have a trickle-down effect on well-being and job fulfillment, making it a key priority for many organizations.
