Supporting your employees’ financial success can be vital for both their well-being and the productivity of your company. Employees who aren't always worried about how they'll pay their bills or whether they're saving enough for retirement will generally feel more content and work more productively, creating a win-win scenario.
With this in mind, here are some effective ways to help your employees achieve financial stability:
1. Provide Competitive Pay. Underpaying your employees can have major consequences for your business, including reputational damage, low productivity, and high turnover. It also sets your employees up for major financial challenges. Ensure that your compensation plans are based on market data as well as skill and experience. In addition to fair wages, you should also consider what you’re offering in terms of paid time off and overtime.
2. Provide Health Insurance. Workers who aren’t able to receive health insurance through their employer are at risk of remaining uninsured and forgoing necessary medical care. This can lead to poor productivity, elevated stress levels, and a huge financial burden if and when a major medical event does occur. While not every small business will be able to offer health insurance to its employees, it’s worth exploring. Small businesses with less than 50 employees may be able to access affordable group plans through the Small Business Health Options Program (SHOP), and there are health insurance alternatives out there as well, such as health reimbursement arrangements (HRAs).
3. Offer a Retirement Plan. An employer-sponsored retirement plan is a major benefit that could help you more effectively recruit new employees and retain existing ones. Many small businesses fear they’ll never be able to afford a retirement plan for their employees, but there are low-cost options available. If a retirement plan is just not feasible at the moment, you could always allow your employees to contribute to their own personal IRA through payroll deductions.
4. Consider a Bank at Work Program. Some banks, like BankFive, offer Bank at Work programs, which allow you to offer your employees top-tier financial benefits. These will vary depending on the bank offering them, but could include deposit accounts with promotional interest rates, cash bonuses for employees who open new bank accounts, waived fees, or discounted mortgage rates. These types of banking perks can help you retain and attract talent and can help your employees on their path toward financial success.
5. Promote Financial Education and Wellness. People don't know what they don't know, and that goes for your employees as well. Helping your employees learn about personal finance can go a long way toward shaping smart money habits and achieving financial stability. In fact, financial wellness programs are now considered to be one of the most-desired benefits among employees. Focusing on financial wellness could be as simple as starting a company newsletter with important financial tips and topics, or it could take the form of an official webinar or coaching workshop. Ensuring your employees know the basics of budgeting, debt management, saving, and taxes can help relieve financial stress and improve employee morale.
By putting some effort into helping your employees succeed financially, you’ll not only improve their well-being but will likely see some positive impact on your business as well. Offering financially-focused benefits can help you attract and retain good employees, and can improve the overall workplace atmosphere. If you’re a business owner in MA or RI who would like to learn more about BankFive’s Bank at Work Program or our payroll and HR solutions, contact us today.