Financially stressed employees are not just less engaged but also more likely to leave – a problem for employers considering widespread talent and labor shortages.
Personal finances have long been considered taboo. According to a YouGov-YuLife survey, only 21% of people are comfortable discussing financial stress with their employer. Hence, employers should proactively offer support and foster open conversations about financial issues. This could help dispel the stigma and enable the creation of effective financial policies that cater to employees’ specific needs.
By taking this bold step, you will likely find a receptive audience: The YouGov-YuLife survey found that almost half of employees – even more among younger generations – believe it to be an employer’s responsibility to improve people’s sense of financial well-being.
So what concrete steps can you as a leader take to help ease financial stress? Here are two suggestions:
Offer Competitive Pay and Benefits
There is no way around it: Ensuring that people are adequately compensated is a must, considering rising inflation and cost of living. Employees who earn less each month will be hard to motivate to perform better even with non-monetary incentives, Michael Wiederstein explains in the getAbstract Journal.