Financially Stable Employees Are More Dependable
If you want to help employees learn about their personal finances, they need to know that they could be spending too much on goods and services [they] don’t need; or make savings in critical areas.
In America alone, personal debt averages more than $130,000 per household with debt. Now that’s going to impact your business. Sometimes employees will come to work even when they’re sick because they’ve got to pay that debt back. They may unknowingly spread a bug that knocks other employees out of commission, ultimately costing your business money.
Additionally, repossessions could force your employees out of a job, which is something else that’s surely intolerable. It’s reasonable to assume there is a certain quotient of cost your business must deal with in collateral expenses which result from debt-ridden employees. This can become especially pernicious if an employee doesn’t have any retirement plans.
When they’re working for your business without any idea where they’ll ultimately end up when they can no longer work, they may quit before your investment in them matures, or develop a substance issue through psychological dissonance based on age and uncertainty.
It turns out there may be a connection between financial issues, depression, and substance abuse. If you can help cure the primary instigator here—depression—through security financially, you may end the cycle. Sometimes, you can nip things in the bud by helping employees consolidate several small loans into a single payment through a personal loan, a practice that has been more present each day. There are a lot of options, and educating employees now will help them become secure in terms of later retirement.
First Things First: Where Does Your Business Stand?
Oftentimes there isn’t a retirement solution in place with new businesses. When you start doing well, savvy employees may ask whether you offer a 401(k) plan. If you’re a small enough business, you may not be able to afford this. There are smaller retirement plans out there, you may just have to look for them.
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Get this part of your operational infrastructure figured out before you start educating employees, as this helps to give them a solid path toward success. Look for a flat fee organization offering such benefits; you should be able to find one that is affordable to your business and can keep employee costs at about .5%.
Helping Employees With Debt
With this ironed out, you can help your employees get their retirement plan in order by showing them statistics pertaining to real situations. For example, did you know the average amount of savings households are able to derive is only $2,500? That’s not enough for years of retirement; an individual in this situation is going to have to bend over backwards in order to make ends meet.
When you’ve got a better plan to offer, this endears your employees to your organization, as you’ve suddenly taken on a role as a saving agent. You’ll be able to mature and even reap benefit from your investment in them as living capital. They’ll stick around much longer if there’s pay going into a 401(k), or something of the kind.
Next, you want to appraise employees of debt relief solutions. You might have a special meeting during lax times in operations where employees can choose to attend whether than being out “on the floor”, or what-have-you.
If you follow strategies like these, you may be able to help stabilize the lives your employees. This has many collateral benefits, the finest of which being a reduction in expenses sent toward filling the hole employees leave when their financial troubles impact your business.
