5 Ways To Ease Your Employees Out of Debt
There are several ways that you can provide incentives or benefits to your employees. In this day and age, employers have come to realize the importance of having long-term employees that know the company’s trade by heart. It’s no longer a matter of hiring the best ones but a question of how to get these employees to stay.
Studies have shown that employees’ well being has a huge impact on their performance. Their financial worries take up 13 hours of their time in a month. That can be a huge loss of profit in a company if we’re basing it on productivity alone! So, what can a company do to ease the financial worries of his employees? Here are some of the proven ways that you might want to try.
1. Financial Security Program
Salary and wages are great ways to reduce the debt of your employees. But, like any other jobs, salaries are sometimes inadequate to meet their financial needs. This is why some companies have started offering financial security program in a form of retirement plan and the likes. It will also potentially increase the productivity of the employees and the company will surely retain their workers as well.
2. Assist Employees in Checking Credit Reports
Did you know that every consumer has a right to a free credit report every year? As an employer, this is the best way to assist your employees in looking into his credit reports and analyze his financial behavior. This can also be done on the internet by following the instructions given by the credit bureau. The report will show your employee’s exposure to credit and how well they are managing their debt. This should be done side-by-side with the employees. It can also improve your relationship in the workplace as the employee knows that you care about his financial well-being.
3. Provide Financial Literacy Course
Now that businesses and companies have realized the importance of financial literacy to their employees, there are several readily available online materials that can be offered to employees who want to avail of these financial courses. If you find that your employees could use some direction, ask them where they are struggling and look for materials that are available online that they might find helpful and interesting. To make sure that they watch these courses, you can even offer an incentive on whoever finishes the material first.
4. Offer Housing Allowance
Another thing that businesses might consider in assisting their employees financially would be to give housing allowance. Business leaders have come to prioritize the retention of their employees in a competitive marketplace and they know that housing is a huge factor that employees consider in getting a job. House allowance is given so that the employee won’t have to worry about meeting the cost of renting and accommodation.
Employers should look at local rent reports like this from ABODO where rent prices decreased over the last month. This may be a good thing to consider especially if rent prices are fluctuating from to time.
5. Convert Vacation Wages to Loan Payment
Ever hired an employee that has an unpaid student loan? Offering to convert their vacation wages as payment for their loan is just a brilliant idea to help them pay off their debt. Employees mostly get 28 vacation days in a year and if that is converted into cash to pay off their student loan, that is an ample amount that they will no longer worry about. It may not seem much on the part of the employer, but it will definitely mean much to those who work nonstop just to make ends meet. This will also be an additional productivity on the part of the employee.
With these kinds of strategies in the workplace, employees will be more capable of managing their finances, hence, they can focus on the task and improve their productivity. They will feel that they are being taken care of and will be more likely to stay in their respective jobs.