We all know that financial burdens can have an impact on a person’s mental health. However, as an employer, there are several steps you can take to create financial well-being for your employees.
With better financial management, financial well-being can be achieved so that employees can be free from stress and uncertain things and can focus on work.
In this article, Mekari will provide some tips on what you can use to help your employees achieve financial well-being. Here’s an explanation.
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How Financial Management Can Affect Mental Health
When someone experiences mental health problems, he shouldn’t also experience financial difficulties. However, we often encounter that happening.
This mental health itself can interfere with people in making a living. There are needs that a person must fulfill, while the financial difficulties he faces often stress him out.
Not infrequently, this forces them to find shortcuts to borrow money. It is another matter if they borrow from other people or legal entities such as banks.
However, they are sometimes trapped in illegal online loans and it is difficult to get out of the debt bondage.
It is things like this that ultimately make many people experience mental health problems.
Supposedly, here the company has a big hand in preventing that from happening. The role of the company will greatly help employees who have difficulty in managing their finances to be helped a little to meet their daily needs.
What is meant by Financial Prosperity
Financial well-being is when a person feels secure and in control of their financial management.
Financial well-being can also be achieved when a person knows that he can buy all his core needs and pay all obligations, can deal with unexpected things, and stay on track with future financial goals.
That is, someone does not need to worry too much about experiencing financial difficulties at one time because they have prepared various plans to overcome them.
Even though being able to feel this prosperity is a privilege, at least for someone who works, the company where he works has a big role in making it happen.
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Companies Must Care About Employees’ Financial Welfare
Employees experiencing financial difficulties can affect their job performance.
Research states that two out of three employees who experience financial difficulties show signs of mental health disorders that can interfere with performance.
Some of them include lack of sleep, low concentration, and loss of motivation to work.
Therefore, companies must care about the condition of employees by providing various supports that can help employee welfare.
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3 Ways to Help Employees Have Financial Prosperity
The good news is, companies can do various ways to help ease the financial burden on employees. So, they can also have better financial management. Here are some of them.
1. Get to know the Conditions of Your Employees
In order to need to make changes to employee well-being, you need to understand your employees and their needs. One way to find out is through an employee satisfaction survey.
For example, by conducting a survey, you will find out what the company is good at providing for employees by seeing how satisfied employees are with the company so far.
What is needed is flexible working hours, benefits such as employee loans, health benefits, and so on.
2. Provide Education Regarding Financial Management
Talking about finances, education is the best way. Unfortunately, not everyone has ever received education about financial literacy and how to do good financial management, instead of saving for retirement funds.
You have the opportunity to help employees by giving them education about financial literacy.
Later, the HR division can provide education in the form of online classes delivered directly by professionals.
Through this education, employees can ask questions directly to experts, make long-term planning, and get support for the financial goals they set from class results.
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3. Facilitate Employees with Earned Wage Access
Talking about financial conditions, of course everyone has different needs. There are those whose daily needs are fulfilled with a monthly salary, there are those who are mediocre, and there are also those who feel that they are lacking so they have to look for a side job.
Solving the problem of employee financial management, we are introduced to the concept of earned wage access .
What is earned wage access ? Earned wage access is a concept where employees can get their salary earlier than the payday date.
The nominal salary they get is based on the number of days they have worked in that month.
In simple terms like this, in one month, Adi, an employee at PT ABC Sejahtera, has worked for 15 days. But in the middle, he needed emergency funds for his father’s medical expenses.
Adi, who at that time did not have enough money, was able to access his salary 15 working days earlier from that one month. So Adi doesn’t have to wait until payday arrives. Later at the end of the month, Adi can get the rest of his salary.