As an organization that financially caters to employees, it is essential that the employees themselves pride on being financially fit.
Financial fitness entails with it an individual’s strategic financial personality and habits that don’t deter excessive debt, bankruptcy or unnecessary expenditure.
In the current economic state, the number of employees experiencing financial anxieties is likely to be high. There is an apparent existing link between financial distress, mental health, and work. Undergoing financial difficulties negatively affects all aspects of life, including work life which is seemingly demotivated and in need of uplifting. Employees experience loss of productivity as in some cases, the whole point of working is to make money and ends meet. And if earning alone doesn’t seem to help with the situation because of lack of proper financial planning, employees end up taking loans and credits which provide temporary benefits but mount up more debts in the long run.
Sound financial planning makes it sure for the individual to meet everyday expenses, family demands and have enough money to pay the bills. In a broader sense, you also get to keep tabs on having enough capital for bigger plans like education or recession, just in case.
This makes it essential that a company pays heed to the way that their employees are managing their finances because it can make all the difference between being up and running and being down and out for the employee. Human resources have an effect on determining the employee benefits packages, taking into consideration salary allotment, retirement plans, insurance, etc. However, rarely do they attempt to provide financial planning, assuming there is a fine line between providing for your people and meddling with their expenditures. This could be the right approach, but on the contrary, if an employee is equipped with sufficient finances but is unaware or careless in their spending, it’s a lost cause.
Hence providing financial helping plans to the employees on spending expenditure, asset allocation and how much to allocate to each asset becomes crucial and not meddlesome.
Long-term goals and saving ideas are required to be persistently emphasized on to be followed because more often than not, being aware of what is beneficial seldom leads to implementation unless there is a constant nudge in that direction. Professional assistance in financial planning does precisely that; it nudges you in the right direction to spend wisely, invest and save.
The benefits that the employees experience owing to financial planning are important because the HR then can be boasted of efficiency.