Many Hollywood greats have said that great directors helped draw out their best performances. It’s the same in the workplace. As an employer, you set the stage for your people to perform their best. Like a director, you can approach your job from different angles in order to get an end result that meets your goals. In an ever-complicated economy, supporting employee financial health is where it’s at.
Today’s iteration of the employer-employee dynamic — in which support beyond the usual perks is more and more common — is both a show of good faith and a boon to your bottom line. Financial stress doesn’t leave your employees at their doorstep. It follows them to work too. Poor credit scores have a particularly negative impact.
The Hidden Cost of Financial Stress
Financial stress isn’t simply a “personal problem” — it’s a significant roadblock in the workplace. Employees with poor credit scores often experience heightened anxiety, reduced productivity, and increased workplace distractions. Studies show that a lack of financial wellness is a leading cause of absenteeism and employees with high debt have twice the absenteeism rates of those without. Since financial wellness is linked to higher credit scores, it stands to reason that employers should explore ways to help employees boost their score.
Need more motivation? Consider these insights:
- Employees with high financial stress are 2.2 times more likely to look for a new job.
- Financially stressed workers lose an estimated 11–14 productive hours monthly addressing personal financial issues.
- Companies lose approximately $500 billion annually due to employee financial stress.
Credit Scores: More Than Just a Number
A credit score is more than a financial metric — it’s a comprehensive indicator of an individual’s financial standing. A credit score has a far-reaching impact on critical aspects of everyday life as well as major life decisions and milestones.
Career Opportunities
It’s not unheard of for employers to run a credit check. You might even do it as part of your hiring process. A strong credit score can:
- Increase job marketability
- Demonstrate financial responsibility
- Potentially unlock advanced career opportunities
Reduced Personal Financial Burden
Better credit scores translate to a number of positive outcomes:
- Lower interest rates on loans
- More favorable mortgage terms
- Reduced insurance premiums
- Enhanced borrowing capabilities
Organizational Benefits of Supporting Credit Health
Enhanced Employee Productivity
When your employees achieve improved credit scores, they come to work with less stress, leading to benefits in work performance:
- Less absenteeism
- Decreased time spent managing financial challenges
- Increased mental bandwidth for professional responsibilities
Improved Retention Rates
When you invest in your employees’ wellness, such as through financial literacy programs, you pave the way for good returns:
- Improved morale
- Increased employee loyalty
- Reduced costly turnover expenses
Recruitment Advantage
Companies that offer comprehensive financial wellness programs are more attractive to potential talent that you want on your team:
- Seasoned pros who bring deep expertise.
- Newbies who bring fresh ideas.
- Principled professionals who want to work for companies that prioritize their people. .
Practical Strategies for Supporting Credit Improvement
Educational Workshops
Implement workshops covering fundamentals:
- Credit scores
- Debt management strategies
- Credit report interpretation
- Financial planning techniques
Financial Wellness Platform Integration
Offer digital platforms with useful resources:
- Personalized financial guidance
- Interactive learning modules
- Expert insights
- Learning incentives
Program Impact
Track key performance indicators:
- Reduced absenteeism
- Data from third-party platforms
- Employee engagement survey results
- Productivity and performance measurements
A Win-Win Investment
Investing in employee credit health is a new approach to workforce development. It helps build morale within your business and acknowledges the link between organizational success and employee well-being.
The message is clear: When employees thrive financially, businesses thrive. When businesses thrive, communities thrive. It’s a win-win. Or a win-win-win!
Sqwire is on a mission to help people take control of their financial future. We partner with businesses, organizations, and solopreneurs to provide our SqwireLife platform to employees and customers. Let’s talk about how you can provide them with FREE access to 70+ lessons on personal finance topics, from insurance to investing to retirement and more!
Photo by Markus Winkler: https://www.pexels.com/photo/credit-score-and-credit-report-19867473/