Modern life is full of stressors, but one of the most upsetting can be financial insecurity.
A 2017 survey conducted by Bankrate found that 59% of Americans couldn’t ready access $500 fo ran emergency. And sooner or later, most of us face some kind of emergency. Cars break down and need expensive repairs or maybe you need a root canal that insurance won’t cover. When your employees have an emergency they aren’t prepared for, that stress can bleed over into work performance.
Surprisingly, it’s not just lower income employees that could face financial stress either. People at all income levels can find themselves living paycheck to paycheck. They may rely on credit cards when trouble comes to call. Simply offering more money isn’t a solution. Encouraging people to save is.
Some companies are helping employees improve their ability to save by paying employees to set aside money in an emergency fund. For example, one trucking company with 1800 drivers begin offering $56 to drivers who contribute at least $19 a week for six months to an emergency savings account without making withdrawals. If they maintain the same pattern for another six months, the receive another $56.
The trucking company created this benefit based on research from the University of Pittsburgh, which found that drivers who report financial stress are more distracted and have more accidents – eight more accidents per year. For a trucking company, eight is a significant number.
Even if you don’t employ drivers, stressed employees are a source of concern. Stressed and distracted employees don’t perform as well. While plenty of companies focus on long-term savings through 401 (k) plans with matching, but shorter-term issues are typically not considered. And the problem of inadequate savings is not just a blue-collar problem; student loan payments and high rents, particularly in urban areas
For more on this benefit, please see:
Companies Are Reducing Employee Stress by Doing This 1 Simple Thing | Inc