Employers can play a critical role in ensuring their employees have the support they need to get through difficult financial times. According to one study, 78 percent of employees who receive financial assistance from their employer say it positively impacts their morale. Furthermore, when employees feel supported by their employers, they are more likely to be productive and engaged in their work.
Employers providing financial support to their employees can see several benefits. For example, they may experience lower employee stress levels, increased productivity, and reduced turnover rates. In addition, providing financial assistance can help employers attract and retain top talent.
There are several ways that employers can provide financial support to their employees. The income and benefits package might be a solid foundation, but an employee’s needs might require something extra. Here are a few areas where you can help your workers in need.
Employees lead different lives, but they all know the importance of being financially stable. As a result, many set up emergency funds in case something unfortunate happens. However, life can be unpredictable, and an emergency fund might not always be enough. This situation is where employers can step in to provide financial assistance.
Whether a natural disaster or a personal tragedy, employees shouldn’t have to worry about how they will make ends meet. Many employers offer interest-free loans or advances on paychecks to help workers get through tough times. You can also set up a hardship fund that employees can donate to or draw from, ensuring the needy worker can recover.
The cost of child care can be a huge burden for families, especially those with more than one child. Employers can help ease this financial burden by offering child care benefits. These benefits could include discounts at local childcare centers, on-site childcare facilities, or reimbursement for childcare expenses.
Letting your employees take their children to the office could also be helpful if you don’t have the financial resources for childcare assistance. They might be looking for nannies to care for their children at work. Removing the monetary obstacle of child care can help your employees focus on their jobs and be more productive.
For many employees, the cost of transportation can be a significant expense. If your company is located in an urban area, you might consider offering a stipend to help cover the cost of public transportation. Alternatively, you could provide free or discounted parking near your office. If your company is located in a rural area, you might consider providing a transportation allowance to help with the cost of gas.
Encouraging biking or walking might also be ideal, but they might not want to come to the office wearing sweaty shirts. As a result, you could offer showering facilities or discounts at local gyms.
Academic Tuition Fees
Employees who want to further their education often have to take on student loans or work extra hours to pay for tuition. Employers can show their support by offering educational benefits such as tuition reimbursement, student loan repayment assistance, or scholarships. These benefits can help employees attain their educational goals without incurring excessive debt.
You can also count an employee’s academic goal as an investment, which means you can pay for their tuition entirely. However, it requires a safety net, ensuring you do not lose your employee (and your investment) to another company.
The health insurance package does not usually cover dental expenses, which can be a significant financial burden for employees. Employers can help by offering dental benefits such as dental insurance, discounts on dental services, or reimbursement for out-of-pocket expenses.
You can also use it on a case-to-case basis. Replacement tooth services rarely happen, but they can be too expensive. As a result, your company could cover the cost of dental implants or dentures for employees in need.
Mental health is just as important as physical health, but it can be harder to address. Many people are reluctant to seek therapy because of the stigma attached to mental illness. Others might not be able to afford it. Employers can help by offering free or discounted therapy sessions for needy employees.
You could also encourage workers to take advantage of employee assistance programs (EAPs). These programs offer confidential counseling services for employees dealing with personal or work-related problems.
Times are tough for many people, and financial stress can hurt personal and professional lives. As an employer, you can help your employees by offering financial support in need. This support can come from interest-free loans, paychecks advances, or childcare expenses reimbursement. Financial assistance to your employees can help reduce stress levels, increase productivity, and retain top talent.