In the current economic climate, living in comfort is a privilege, at best. And not worrying about tomorrow is a luxury that not everyone can afford.
With this, business owners are now encouraged to revolutionize and implement an equitable, scaling pay for their employees. After all, there’s nothing wrong with ensuring that your employees are comfortable.
If you’re an employer who wants to build strong relations with your team members, improving their living conditions, aside from refining the work environment, should be at the top of your list. Consequently, creating opportunities for your employees to be wise in handling money will positively affect your business. This is true in more ways than one.
Investing in financial literacy training for your employees is one of the most significant things you can do for them. Plus, it will actually help your business in the long run. To know more, here’s how financial literacy training affects workplace productivity.
Financial Health is Healthy
Employees will benefit if they know how to handle their money wisely. It’s not just about merely saving up for the rainy days. It is important to have the freedom to choose whether to buy an umbrella or a raincoat, or to bask under the cold, damp rain out of joy.
This is not to say that financial literacy means avoiding all types of problems, of course. Financial literacy helps people understand that proper financial management creates a broader space to navigate during a crisis or cash crunch.
Having a degree of freedom to control your finances provides a sense of comfort and confidence that you’ll manage to pull through. As a business owner, you want that exact confidence instilled among your employees. This way, they can dedicate their headspace to accomplishing their work instead.
Reducing their cognitive load as much as you can, within your means without overstepping your boundaries will make employees productive and loyal to you and the company. To know more about investing in your employees’ financial health, check out this post.
Everyone Becomes Money Sensitive
The merit of money doesn’t start from having it or even wisely spending it. It lies heavily on the grueling process of earning it. Through financial literacy training, employees—and even you—become aware that money doesn’t just fall off a tree.
In addition, both you and your employees will value money as something more than a means to survive. Everyone will now look at it as a token of hard work. A collaborative effort in workplaces due to a common goal often contributes positively to work relations.
By looking at money equally, you and your employees may understand that money is vital to everyone’s survival. It is so much more than a means to buy and pay for things. You both realize that the business is your income source, and you strive to improve it.
Employees need to know that their bosses are just like them. Yes – your boss has to pay the bills and buy food. By leveling with your employees and their needs, you reach a point of understanding that’s both professional and personal.
For the business, this means less absenteeism, tardiness, and improving quality of work. All of this will contribute to generating more income for the company and, therefore, themselves. There’s nothing wrong with wanting to earn more as long as you understand that people who keep your company going are adequately compensated for their job well done.
No Need for Multiple Jobs
In 2019, it was reported that about 5.1% of Americans juggle between jobs to get by. This means that many have to work multiple jobs for an inhumane number of hours to make ends meet. While 5.1% seems low, the chance of one of your employees being part of that percentage is not zero.
If you haven’t held multiple jobs before, imagine having to cook eggs, bacon, soup, and mac and cheese all in one frying pan. First off, it’s nearly impossible. Secondly, it’s going to take up a lot of time. Working multiple jobs is exactly like this—having to take on every job in a single pan and not having the chance to buy another to distribute the labor.
With an employee like that, chances are, their productivity and quality of work become impaired. Not that you can blame them. It’s just that the human body and mind can only do so much—and lesser if the person is tired.
So, holding financial literacy training and implementing scalable pay means relieving your employees of the burden of having to work multiple jobs. Nowadays, the economic system is so dire that belonging in and below the poverty line makes survival increasingly difficult.
Helping your employees manage by offering financial literacy training can provide them the means to live comfortably and help you improve your business as well.
Offer Your Employees Financial Literacy Training – Summary
Living with little money nowadays is extremely difficult. As the world progresses, market prices inflate rapidly, and helping your employees keep up with the times can help them focus more on their work, thereby making your business grow. After all, running a business while being an empathetic leader to your employees is a gesture they’ll never forget.
You know? I love the idea. Do you have any suggestions on how to get that kind of training for a handful of employees? Hopefully, there are a few video resources or books too.