Money Matters in the Workplace!?

Do your employees want more money?  Do they wish they could buy a sports car, vacation home, or go on an exotic trip?

The answer to the questions above is a resounding “Yes”, unless your employees are different from every other company in America.  Although that is really not the question I’m asking.  My question is whether personal finance matters to companies.  Does the health of your employee’s balance sheet matter as much as the balance sheet for the company?  That may be a stretch for you, so let’s keep the question simple.  Does the health of your employee’s personal finances matter to you?

If it doesn’t, stay with me while I give you some reasons why it should, and hopefully you will have a different opinion.  And no, I am not about to ask you to give everyone a 10% pay increase to fix their problems.

5 Reasons the Personal Finance of Your Team Matters

  1. Divorce – Have you ever had an employee who was going through a divorce?  If so, you know how distracting this can be to them and the team they work with on a regular basis.  According to Dave Ramsey, author of Financial Peace University, the number one cause for divorce are money fights and money problems.
  2. Garnishments – The more employees you have, the larger the problem.  The payroll department has enough to worry about already, and the increased burden of garnishments from your employee’s creditors being added to the list, costs your company large amounts of time and resources.
  3. Retirement – Wouldn’t it be great to have better participation in your retirement plan?  Remember when 401(k) contributions are withheld…before tax.  This allows the company match to be tax deductible, in most cases.  If employees are not in a financial position to contribute to their retirement, they are also not getting all of the benefits extended to them for working with your company.  Employee’s retirement plans are often raided to pay bills, thus limiting their ability to retire with dignity.
  4. Attendance – For whatever the reason, people who are stressed financially are more often sick.  They are also more likely to need time off for various other reasons.
  5. Attitude – How focused can your employee be if they are fearful the repo man may come and take their car today?  The overall attitude is improved when people are not worried about how they are going to pay their bills.  We have all been there and we know our attitude suffered because of it.

This is not a magic pill, which will eliminate divorce from our society.  It will also not be the thing which gets everyone to save for retirement.

What it will do is put another arrow in your quiver as you work to make your company better tomorrow than it is today.  It lets your team know you care about them from 9-5…and when they go home, too.

A great resource for employers is available through Dave Ramsey’s CORE Financial Wellness.

FEEDBACK:  What would you do with fewer bills and more expendable income?  Please comment below.

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