Employee Financial Concerns Affect Profits

By August 28, 2020 COVID-19

Financial Issues Affect Employees

 

Much has been written about how the pandemic is affecting jobs, childcare, increased depression, spousal abuse, and increased alcohol/drug consumption. We’re certainly aware of how these and other concerns affect our employees‘ finances. But not enough attention has been given to the many side effects that all of these financial concerns have on a marriage and the family as a whole. Studies have shown that disagreements over money are one of the leading causes of divorce in the US.

Personal financial challenges can have ripple effects throughout a family.  Fear of losing their home or apartment or concerns about their credit report have long-lasting effects, and these financial issues place stress on a marriage.

 

Bringing Stress to Work

 

The pressure of financial problems for an employee will certainly be brought to work. This situation will have an effect not only on their work performance but on their morale and their ability to handle the added pressures that  COVID-19 has created for all of us. These many pressures can affect the profit of your company.  So the question becomes: What can a small to medium-size business do with limited budgets to assist your employees in reducing their personal financial stresses?

 

Hiring Employees Reduce Stress

 

Mulling HR recently hosted one of our weekly webinars on this subject with Sam Wilkerson of Jon Baker Group as the speaker. Sam did an exceptional job of explaining the many technical aspects an INDIVIDUAL can do to assist in relieving financial strain. I also presented what a COMPANY can do to assist their employees in this area. Listed below are the items I recommended:

  • Train your Frontline Supervisors to listen to their employees’ remarks about financial worries. Many people will share these concerns with their coworkers.
  • Be mindful of an employee receiving garnishments at work, which is a serious indicator of someone having financial challenges.
  • Invite a Financial Advisor such as Sam Wilkerson to speak at a ‘Lunch and Learn’ or virtually on a webinar. He can educate your employees and ease financial concerns, no matter what their income level.

 

Reducing Your Profits

 

Seasoned managers are aware that an employee’s home life and personal problems affect their performance at work. Keep in mind as you reopen all or part of your business that an important part of your managerial responsibility is to be mindful of the total person of each of your employees. If you don’t, you may have less effective workers and that indeed will affect your productivity and bottom line. And that is called less profit for you to continue to grow your business.

 

Author: Emory Mulling

Emory Mulling is a nationally recognized HR Consultant and Executive Coaching expert. As Founder and Chairman for the Mulling Corporation, the Mulling family of businesses is headquartered in Atlanta, Georgia. The firm was founded in 1986 and is a leader in HR consulting for small, medium and large companies.

Mulling Corporation