3 Ways to Focus on Employee Financial Well-being

Money matters can be tricky to navigate, particularly in the workplace. It’s often still taboo, with salaries cloaked in secrecy and employees and leaders alike typically keeping quiet about compensation and other aspects of financial well-being at work. Companies worldwide are slowly making strides to bring sunlight to this subject, with more and more organizations sharing salary ranges in job descriptions and some trailblazers, like Buffer, taking a radical transparency approach and posting all their employees’ salaries publicly.

While many still stay mum about money, it’s essential to employee well-being, equity, and retention. And it’s time for all leaders to focus on it as part of their business and workplace strategies. 

What are some ways you can do this?

Fair Compensation as a Key Part of Financial Well-being

First things first. Fair compensation is a must. Some leaders might think skimping on salaries will help their bottom line, but this short-sighted view will leave them with high turnover and increased operating costs.  

Whatever formula you choose as your compensation model should be grounded in the principles of fairness and equity. Some companies decide that the CEO will not make more than X% of the lowest-paid employees. Others may take a very atypical approach, with peers collectively determining salaries. Like culture, compensation is unique to each company, so there isn’t a one-size-fits-all approach. 

When deciding how to handle this foundational element, be sure to consider your total rewards package, including bonus structure, retirement planning, commuter benefits, wellness stipends, and more. The main goal here is that your employees feel respected and rewarded for their work and don’t experience financial stress, which can make you physically sick.

Financial Coaching to Encourage Good Money Habits

Education is another important factor in financial well-being. Many people grow up never having learned good money management skills, which follows them into adulthood. As part of your company culture, make financial education a critical component. 

You can do this by offering a financial education series and bringing in external experts to discuss retirement management or best practices for saving for large expenses. You can offer access to online learning modules, like LinkedIn Learning, on topics like Personal Finance Concepts Everyone Should Know or Financial Literacy in 30 Minutes.

As with everything, knowledge is power in the realm of financial well-being. Empower your employees by offering them access to resources to help them find sustainable financial stability.

Emergency Fund for Unexpected Challenges

Life is full of unexpected events, and sometimes they can be costly. Even the most fastidious financial planner might find themselves worrying about the cost of an unplanned medical emergency or, worse–a tragedy like a natural disaster or house fire. 

Consider setting up an emergency fund to help employees in need. Set aside some of your annual operating budget as a primary source of the fund, but encourage employees to contribute if they can. Be open about the fund and encourage people to reach out for help if they need to use it. 

As a leader, a holistic approach to employee well-being will keep your employees motivated, engaged, and inspired to stick around for the long term. Providing access to financial well-being tools and resources and making it a central part of your culture will pay dividends.

For more insights on improving workplace well-being, check out Make Work Healthy and my coaching solutions, or schedule a consulting call with me.