How to Financially Support Your Employees (Other Than Raises)

Are you worried about your employees' work performance? Do you want to have a thriving and productive workplace? Put down the checkbook for a moment – there may be a better way to help.

As an employer, promoting your employee’s financial well-being is essential not only for their success but for your organization's success, too. PwC's 2023 Pulse Survey found that one in three employees’ money troubles negatively affected their productivity at work.¹ That's why it's critical to act early on before these issues become too daunting.

But financial security isn’t all about how much you pay your staff. It's about creating a financially secure and supportive working environment that meets their individual needs. Read on to learn how you can support your employees during times of financial hardship and how these measures can ultimately drive performance and loyalty in the workplace.

Why Raises Alone Won't Work

Offering direct salary increases and bonuses may seem like the most effective way to financially support employees. However, money alone often isn’t enough to help your employees develop essential financial knowledge and skills.

According to PYMNTS' LendingClub Report, 64% of Americans are living paycheck-to-paycheck as of December 2022.² This doesn't just apply to lower or middle-class households, either. 

LendingClub also found that with recent inflation and financial stressors, over half of the people earning six figures were struggling to make ends meet, too.

Money doesn't solve everything. In order to maintain financial wellness, employees need more than just a raise – they need guidance and stability. That’s why providing resources and sound advice (alongside any salary increases) can make all the difference. 

Here's how you can create an environment where financial security is a top priority.

Financial Education Initiatives

Providing educational seminars or workshops can be a great way to give employees access to expert knowledge on managing their finances more effectively.

Consider holding quarterly seminars hosted by certified professionals within relevant areas of finance (like banking, investments, and tax planning). There they can discuss topics such as budgeting techniques, smart spending habits, retirement planning strategies, and debt management practices with colleagues.

You could also research programs that specialize in providing online financial education tailored for individual employees. Universities and financial institutions have offered seminars and courses for years. However, as technology advances, online resources have become much more comprehensive.

Financial Management Software 

Along with providing employees financial education, online technology has reached levels that allow efficient budgeting and money management processes with just a few clicks away. There are many software applications and websites that offer quick access to tools needed for managing regular finances.

Many workplaces are now introducing budgeting and financial tracking tools that provide instant feedback in order to help employees keep a better tab on their spending habits.

These apps include options such as categorizing expenses, keeping track of investments, and setting reminders for payment due dates. Some programs may even be able to offer suggested budgets based on a user’s income level and past expenditures, making it easier for employees to stay within their financial means or saving goals. 

Financial wellness programs can often be integrated into the workplace system, too. Employees will have the capacity to coordinate with management and HR or access resources with ease. Ultimately, these tools help guide employees in creating better spending habits and promote sound financial decision-making without having to hassle management for assistance.

Benefits, Aid, and Financial Assistance

Aside from offering educational resources, organizations can be proactive in meeting employees' financial needs with direct assistance with their necessary expenses. This often looks like providing flexible working hour schedules to meet childcare and family obligations, creating an emergency fund program for employees in need of urgent cash flow, or assisting with student debt payments.

Don't forget about the large, obvious benefits, like health insurance and disability. Though the Bureau of Labor Statistics found that medical care was available to 89% of workers in 2022, this number isn't streamlined across industries (especially for long-term disability).³

Keep Reading: 30 Unique Employee Perk Ideas to Add to Your Benefits Package

Paid leave is one of the most beneficial ways to show support for employees who are struggling financially. It can provide them with peace of mind about their finances while they take time off to take care of themselves. This can also be useful for those who may be facing financial hardship due to a life-changing circumstance, such as the birth of a child or a medical emergency.

And though many organizations have made the move to remote work, many employers offer employee relocation assistance by covering living expenses while finding housing and arranging transportation. These supplemental benefits could also be available to help shoulder the cost of making moves due to larger economic shifts such as inflation or sudden life events like natural disasters – if agreed upon by management.

Provide Investment Opportunities

Lastly, consider implementing 401(K) match programs which allow employers to contribute a certain percentage of their employees’ contributions into long-term retirement savings plans. Establishing a 401(K) can help ensure your employees’ retirement readiness, and that they will have financial security in the future.

You can also look into offering employee stock purchase programs (ESPPs) where you can provide your employees with an opportunity to purchase company stocks. This type of plan typically offers discounts on the stocks' current market value, allowing more employees to participate in this activity.

Focus on Financial Wellness

Offering salary raises and bonuses is a great way to financially support your employees, but it's often not enough to sustain a healthy workplace.

Companies must look beyond simply giving out raises and instead look for ways they can support their employees' overall financial wellness.

Financial wellness is an important factor affecting daily performance at work, so consider taking steps beyond raising salaries if you truly want to contribute towards improving your employee’s well-being. 

If you're looking to implement any of these measures, Enrich's Employee Financial Wellness Program can help you make a difference in your employees’ lives.

The Enrich program is designed to reduce financial stress for employees and employers alike, providing personalized money management and financial literacy software to increase your quality of life. We offer a range of services, guidance, and resources anyone needs to help build their personal and financial success.

Contact us to schedule a demo and start building a holistic financial wellness program within your workplace today.

1 - http://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey

2 - https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-inflation-income-consumer-finance-spending/

3 - https://www.bls.gov/news.release/pdf/ebs2.pdf