Offering raises to employees isn’t always possible, but other measures to help ensure financial security should be.
Employee financial wellness may seem like an exceedingly personal subject — one with which the employer shouldn’t interfere. And it’s probably unwise to give your employees instructions on how to spend or invest their money. Research from ADP shows that financially secure employees are less stressed and more engaged at work, so employee finance is something you should take time to consider.
Of course, if you ask your employees what the best way to help their financial situation is, they’ll likely say, “Give me a raise.” While this would be nice, most businesses cannot afford to increase everyone’s salary. Instead, here are some things you can do.
To keep reading, click here: Making Employee Financial Wellness a Key Focus of Your Benefits Plan
4 thoughts on “Making Employee Financial Wellness a Key Focus of Your Benefits Plan”
I just want to say, for lower-paid jobs, please don’t force people to participate in a 401K. There is little chance they’ll save enough to roll the account over. If they leave the job, they’ll have to cash it out and that will cost them a penalty. So they’ll actually lose money.
This has happened to me twice and it stinks. I won’t make enough to ever retire, and I need every cent of my paycheck right now.
There is no such thing as an account that is too small to roll over. You can roll it into an IRA, and it can be peanuts.
I’m sorry that you were given such bad advice – I think that someone was being lazy. Shocking, I know.
The recommendation is “opt out” rather than “opt in,” not “forced participation.”
Not that I like the idea much either, and it would need to be made *absolutely* clear during on-boarding.
Being out of debt for 1.5 years, I can say that it feels like a 30% raise. We did it on one income. We did it in New Jersey. How much you are making can be enough if it isn’t earmarked for other payments. It takes a lot of hard work and a huge push, but the pay off is worth it. I recently went back into the workforce (now 2 salaries) and was able to be picky about my job and wait out for one that doubled my income. I would not have had the luxury of doing that if I had still been in debt, tied to payments every month.
I actually came across a recruiter in my job search who wanted to be sure I “needed” the job, who wanted to see if I had debt. To him, this reduced my possible attrition risk, which shows you how wrong the debt mentality can go. I have more peace of mind and am a better employee because I don’t worry about my next paycheck anymore. I can take on riskier projects with bigger payouts because I’m less worried about what happens if I fail – would I lose my job and not be able to make payments. Should I spend my day worrying about impressing the right to help ensure job security or thinking strategically and building the business. Businesses should 100% encourage employees to get out of debt and help them plan for retirement. And they will be loyal to you for it.
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