Employees at every level are dealing with amplified financial stress. According to a survey, about 60 percent of Americans attested to the fact that Coronavirus has harmed their finances.
Millions of people the world over are coping with Financial stress and Financial anxiety while dealing with the fear and reality of death and disease.
Based on a poll conducted by the Kaiser Family Foundation, close to half (45%) of U.S. adults have reported that their mental health has been negatively impacted due to worry over the virus.
How employers an help employees deal with financial stress
Coronavirus is everywhere, and there is a general fear that employees will get it and infect their families.
Employers worldwide are trying to get their employees to work from home; to avoid contracting the virus.
Employees are worried about financial stress; thus, the need to help arises.
Before going into details about ways employers can support employees during the Covid-19 pandemic, we need to consider several areas employers can assist in.
How to take care of your employees amidst the COVID 19 outbreak
- 1) Financial Wellness
- 2) Financial Anxiety
- 3) Paid Leave
- 4) Unemployment Resources
- 5) Mental Health
- 6) Virtual Recruiting
- 7) How to Manage Financial Anxiety
- 8) Ways to Help Reduce Financial Stress of Employees During Covid-19
Financial wellness deals with the process of learning how to manage financial expenses successfully.
In short, your employees’ financial wellness is their ability to have a healthy economic life.
Organizations can support their employee by ensuring they get the best retirement savings, monthly budget, credit card debt, and a substantial paycheck. Lecture sessions can be organized to train them on how to go about it.
Here a complete guide on Financial wellness, Download it for FREE!
According to a survey, most employees felt they’d be working into retirement.
Here are some financial wellness tips for employees:
Prepare for Unexpected Expenses
You must avoid living from paycheck to paycheck to avert disaster. Because a little problem can eat up all your budgets.
Waiting until the next paycheck means living with a periodic background check.
Financial stress is terrible for everyone; thus, you need to invest in positive financial wellbeing.
You can figure out your amounts, budget for your goals, and budget for spending.
Make Provision For Emergency Savings
The moment you don’t have any emergency savings, it’s easy for a small financial issue to disturb your life. For instance, you run out of gas before the estimated time, and you don’t have the “rainy day” fund to pay for the refill.
Not being able to take the food quality and quantity you need harms your productivity.
An employee must find out how much they need in their emergency fund and fill it up.
The aim is to have cash reserves to cover most emergencies that come along. Emergency savings is an integral part of your financial wellness.
Clear Your High-Interest Debt:
Paying off your debt is one of the financial wellness tips for employees.
It will allow you to breathe a little easier daily, knowing your debt is decreasing, not increasing.
Plus, when they’re all paid up, you can focus on your leisure goals.
To get there, employees must move debt around to minimize interest payments and pay it off quickly.
They can also transfer some of their higher-interest obligations to a lower-interest credit card by calling their credit card company or bank.
Make Good Use of Tax Advantages:
Taxes are costly because they generally equate to a lot of money. Money that can function as emergency savings or used to pay off debt.
Employees should take advantage of every chance to “legally” avoid paying taxes on earned income.
By using employee benefits to maximize tax advantages, your employee financial wellness will significantly improve.
Why is Financial Wellness Important
According to science, Financial anxiety is a feeling of worry, fear, or unease about your finances.
Consistent thinking about your monetary goals and how you’re not reaching them can be a sign of financial anxiety.
Employers can make provision for a financial assistance program.
Employees can also manage Financial anxiety by focusing on things they can control and doing things that can help them stay healthy as much as possible.
Later in this article, we’ll discuss how to manage financial anxiety.
Employers should provide up to two weeks of paid leave related to COVID-19, according to The Families First Coronavirus Response Act (FFCRA).
It’s not only the employee that will benefit from this, as employers are also eligible for two new refundable payroll tax credits.
The Coronavirus Aid, Relief, and Economic Security Act (CARES) put in place close to $350 billion in partially forgivable loans to small businesses and nonprofits with 500 or fewer employees impacted by Covid-19 to help cover payroll and temporary closings.
Employees need to check with the H.R. department of their company and inquire about any benefits and paid leave they may be eligible for.
The naked truth is that most employers, especially small businesses, will have to sack and lay off employees during the COVID-19 pandemic.
However, employers should provide severance pay, extend health benefits, and state a tentative rehiring date in case the business plans to continue running.
Employers should also aid employees with the unemployment process.
Mental health platforms that provide teletherapy have noticed a rise in usage during the Coronavirus pandemic.
People become anxious, depressed, isolated, and lonely as they observe social distance and stay home to limit the spread of the virus.
Providing resources to those who are struggling with their mental health during this crisis is vital.
Employers should evaluate their present mental health benefits and consider telehealth solutions.
Read more about mental health at workplace
It’s no longer news that employers in essential services are struggling to fill open positions and comply with social distancing restrictions.
For instance, CVS Health will recruit 50,000 full-time and part-time personnel through virtual job fairs, interviews, and job tryouts.
Employers can offer assistance to unemployed people by using virtual solutions such as video conferencing for interviews.
There is no need to suspend the hiring process if you have the budget to employ.
How to Manage Financial Anxiety
In the previous section, we discussed how employers could help with their employees’ financial anxiety.
In this section, we’ll discuss how the employees can manage their economic stress during the COVID-19 pandemic.
Enquire About Your Eligibility It’s normal to be anxious about whether you will be layoff at work or not.
If there is a provision for sick leave at work, you should make use of it now.
Read more about impact can financial stress have on you.
You need to focus on the functional aspects of your finances instead of the negative issues.
Although thinking positively won’t conjure any magic, it can help calm your fears.
It can also help you recognize and appreciate your financial strengths, which could proffer solutions to some of your problems.
Get a piece of paper and start listing the positive aspects of your money management skills.
If things are tight or money is causing you anxiety, take a second to focus on where you’re going right. It will help you stay calm and clear your head.
Prioritize Your Payments
You need to prioritize which bills you’re going to pay first.
Take care of your essential need, such as food, shelter, utilities, clothing, and transportation first. Just be focused on taking care of your necessities while doing your financial planning.
Download a complete guide on Financial planning for FREE! There is no need to shop for attire, so resist any urge to engage in any retail therapy.
Be on alert with rules about rent and EMI payment as some states are implementing programs that prevent evictions during the pandemic.
Look for Alternative Sources of Income
Since you’re not sure if your job will be affected by the pandemic, you may want to start looking for an alternative source of income.
You may make use of the opportunity to join the freelancing market.
Some companies are desperate to hire freelancers presently.
You can use any soft skills you possess to earn extra cash from home.
Manage Your Mental Health
Several studies have linked financial distress to poorer mental health.
The more stressful you’re about money, the harder it may be to manage your psychological wellbeing and vice versa.
You can manage your mental health by practicing good self-care.
Make use of the pandemic to identify and practice healthy coping skills.
Since you can’t go to the gym or go on an outing with your friend, it’s essential to determine what coping strategies work best for your stress level. Lastly, you also need to exercise more.
Ways to Help Reduce Financial Stress of Employees During Covid-19
With the current Covid-19 pandemic, your employees are stressed financially.
Employers are tasked with helping them reduce financial stress because it can affect their productivity at work.
Here are ways to reduce employee financial stress.
Quick Access to Earned Wages:
Presently, most workers are working from home. They need to pay the rent, and the bill for purchasing groceries is getting higher.
Sometimes when hourly employees need quick cash, they run to expensive payday lenders that charge excessive percentage points in APR for a short-term loan.
Employers can help to put money in the bank before payday. You can simply reduce their next paycheck by the amount they draw early.
Empower Employees to Master their Money:
A considerable percentage of people who earn six-figures live paycheck to paycheck, and this causes financial anxiety. Plus, presently, the next paycheck is not guaranteed. Thus, it’s no surprise to learn that some hourly workers face a severe cash crunch.
Employers need to educate their employees on how to master their money and have proper financial planning. You will offer them the best tools and benefits.
You need to treat them as partners for long-term success because you will be setting yourselves up for a major win-win.
Read more about employee benefits in India
Give Employees the Chance to Choose their Payday
Many organizations are conversant with a typical payday schedule such as the 15th and last day of Monday, every Friday, or weekly schedules.
By offering early access to earned wages, employees can effectively choose their payday.
Due to the pandemic, most employees are stuck with their families at home, so the bills continue to surge.
With this provision, they can shift around their payment schedule to better align with their laws and financial needs.
Organize Coaching on Debt
Most public schools don’t make provisions for a lecture on personal finance or financial planning.
Due to the lack of training from parents or friends, most people don’t know how to handle things such as debts, credit cards, and bank accounts.
Financial classes, coaching, and assistance programs will do an excellent job of helping employees overcome financial strains on their own.
It can begin with a simple tip or piece of advice. Employees having a better understanding of their financial options will increase their satisfaction.
Employers have the power to make it easier for their employees to find financial stability.
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Employees need to automate savings to escape the paycheck-to-paycheck cycle. Based on the Federal Research report, nearly 40% of U.S. households could not afford a $400 emergency from savings.
Thus individuals and families must maintain an adequate emergency fund.
Employees can automate savings by going through a split direct deposit from their payroll provider.
Plus, they could turn on a recurring transfer from checking to savings on payday at their bank.
And there you have it – ways to help your employees deal with financial stress during the Covid-19 pandemic.
Helping your employees in these ways is a good start towards improving your workforce’s financial wellness and could lay a foundation for implementing a full-blown employee financial wellness program in the future.
From those mentioned above, it’s vivid that you need to turn your employee’s financial stress into financial wellness. Employers must know what their employees need help with and what they worry about.