Did you know that financial matters and economic pressures are amongst the major causes of stress for Americans, and such anxieties can even spill over into their work lives? This is very true. In the PwC Employee Financial Wellness Survey 2022, 76% of those distressed respondents declared that their financial troubles have had a detrimental impact on their job performances.
To aid them in addressing some of this stress, employers should strive to assist employees in properly planning their household budgets.
It has been found that consumers with a budget have more control over their finances, greater assurance and a higher level of security compared to those who do not.
Unfortunately, some employees might be too overwhelmed to tackle budget planning all by themselves. Statistics have indicated that 96% of HR managers and 89% of U.S. employees admit that their organizations need to do a better job of educating them on the best ways to maximize their financial benefits.
This gives employers the opportunity to supply employees with financial coaching and planning tools that can help strengthen their fiscal fortitude, thereby improving productivity and engagement on both sides.
Team members might be worried about several matters, from a spouse’s joblessness to current headlines to a huge drop in their retirement account. This is why there is a requirement for constant and individualized assistance from a financial coach.
Under normal circumstances, those employees who maintain a budget will be at an advantage. But for those who are not familiar with budgeting, now would be a great time to start. Here are a few ways in which a financial coach can help:
A fitting budget should take into account an employee’s present conditions while being adjustable to any future modifications. If anyone in their household has experienced a reduction in income, the coach can assist in formulating a budget that centers around their new economic standing while at the same time figuring out the possible contributions of savings.
Financial coaches can act as a neutral third-party, aiding the employees in making challenging decisions concerning their household expenses and even teaching them strategies to mitigate any disputes.
The coaches can also ensure that the employees take full advantage of any cost-cutting programs provided by their employer, like discounts or transportation benefits.
To stay on top of their budget, there are several resources like mobile apps, online tracking tools, and traditional budgeting spreadsheets. A financial coach can help them pick the most suitable options (which may include employer-supplied financial wellness tools) and aid in making budgeting a habit.
Financial restrictions can bring about feelings of deprivation, damaging their mental well-being. With the help of financial coaches, employees can make sounder monetary decisions and feel a sense of relief from their fiscal pressures.
The past couple of years have tested the mettle of employees, forcing them to make changes to their daily routines, work and finances. With the help of financial coaches, they can adopt prudent adjustments to prepare them for the uncertain future.