More than half of Americans have less than $1,000 on hand and many more can't spare the money to cover a $500 emergency. Statistically speaking, many of your employees are in the same boat. If you care about your employees, it's easy to see why you would want them to enjoy a more secure financial future. But their financial stability affects you as well. For example, if an employee can't pay to have their car fixed, they may not be able to get to work. Employees who are worried about money may also have difficulty performing on the job. Following are ways you can help them become more financially secure.
Offer Financial Counseling
It's possible for low-income families to become more financially secure if they know how. The sad part is, though, that many don't know how to build a solid financial foundation. For this reason, many companies are offering free financial counseling as a benefit or perk of employment. A financial counselor can help your employees budget their money wisely, save money, plan for future expenses, and clean up their credit. They can also help them prepare for major life milestones, such as retirement.
Teach Payroll Logistics
Your employees should have an emergency fund that covers 3 to 6 months worth of living expenses in case they get sick or have to miss work for some other reason. Unfortunately, though, many people find it difficult to put money away after they've cashed their check. You can help them solve this problem by teaching them about payroll functions, such as direct deposit. Teach your employees about savings and show them how they can send a portion of their paycheck directly to a savings account by filling out a new direct deposit form.
Offer Better Benefits
You can greatly improve your employees' financial future by offering key benefits, such as a retirement plan, tuition reimbursement, health savings account, pension, company stock program, etc. If many of these benefits are out of reach for you financially, you can start with something small, like life insurance. Any benefit you offer to your employees will help them live a more financially secure future.
As you can see, there are several ways you can help your employees secure a more financially secure future. While it's not your responsibility to teach your employees how to manage their money, doing so shows that you really care and will help your employees remain happy and productive while on the job. For more ideas or advice on providing financial help for your employees, contact a professional such as Risley Annette CPA.