New ServiceNow Research Highlights What Employees Really Want

Perks at work have become a source of pride and a competitive differentiator for companies vying for top talent. Stocked fridges, catered meals, on‑site fitness facilities, laundry services and complimentary transportation are just a handful of popular perks companies offer to lure new employees. But according to new research by ServiceNow, an effective way to build an engaged and productive workforce is giving employees a better employee service experience during big moments and even small ones in between.

ServiceNow’s “The Employee Experience Imperative” Report, which studies the service experience at work, reveals that employee enthusiasm for work peaks at the start of a new job, but wanes by 22% shortly thereafter. Where are employers missing the mark? The findings tell us that employers aren’t supporting employee’s basic needs on a day‑to‑day basis during the employee lifecycle: 41% still struggle to obtain information and answers to basic questions, like finding a company policy or resolving an issue with their equipment. Furthermore, only 41% believe their employers make it easy to select their equipment before their first day and only 51% of employees believe their employers make it easy to receive equipment necessary to perform their job responsibilities at the onset of their job.

Employees today – regardless of their role or generation – want to be heard and valued, and they want an employee experience that suits their needs throughout their career with an organization,” said Pat Wadors, Chief Talent Officer at ServiceNow. “If an employee’s experience is lacking at the onset of their new job, the impact for some employees can likely be felt until the employee’s last day. By creating beautiful and meaningful experiences and an environment where work gets done efficiently, employers will benefit from a more engaged and productive workforce.”

Pat Wadors, Chief Talent Officer, ServiceNow
Pat Wadors, Chief Talent Officer at ServiceNow

Where Can Employers Improve? Mobile Work Experiences

One‑third of our lives is spent at work. And, employees want their experiences at work to be more like their experiences at home – like having mobile technology at their fingertips to make finding information and accomplishing tasks simple, easy and convenient. In fact, more than half (54%) of employees expect their employers to offer mobile‑optimized tools at work. Yet, the majority (67%) report not finding it easy to complete necessary paperwork on a mobile device before their first day and only about half (52%) of employees have been allowed to use a smartphone or tablet to access employee tools from HR or other departments. However, those who do have such access self‑report higher productivity than those without these mobility tools. This is a miss for employers who haven’t yet introduced mobile self‑service to their workforce, especially for those aiming to retain and attract millennials, as over half (59%) expect employers to provide mobile‑optimized tools.

 

A Generation Gap? It’s Smaller at Work Than You’d Think

Baby boomers and millennials aren’t so different at work, after all. Across the four generations that comprise today’s workforce – baby boomers, Gen‑Zs, millennials and Gen‑Xs – employees want a better experience at work. The research found that, across generations and departments, employees are losing faith in their employers to deliver positive employee experiences:

  • Less than half (48%) of employees believe that employers are invested in improving the employee experience;
  • More than half (61%) of employees rate their employers poorly based on a negative experience with personal leave;
  • Less than half (45%) of employees feel that their opinions and perspective matter to their employer. However, millennials (43%) are more optimistic that employers will address feedback when compared to baby boomers (35%);
  • Only 37% of employees believe that employers automate processes to improve the worker experience; and
  • Less than half (44%) of employees believe employers provide them with easy access to information from HR and other departments; the same number felt they did not have access to the information vital to their job on day one

 

A positive experience at work strongly correlates high employee net promoter scores (eNPS)– meaning, employees that create great employee experiences are likely to have more loyal, satisfied employees. That’s real business value.

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Considerations Before You Increase Employee Monitoring

There are all sorts of workplaces out there. Some require clocking in and out so that management can ensure every employee is logging a certain amount of hours each week. On the other end of the spectrum is the type of company that doesn’t invest in any employee tracking at all, other than for security purposes. Their staff can come and go as they please, create their own schedules, and even work from home. 

However, even seemingly lax companies may monitor employee email or software use. When it comes to employee tracking, ethical and legal issues pop up, along with issues surrounding company culture. Understanding how and why companies track employees is the first step toward deciding what’s right for your business.

Types of Employee Tracking

There are numerous ways for a company to keep an eye on what employees are doing. From direct observation in the office to secretly logging every keystroke an employee makes on their computer, some types of monitoring are helpful, while others can feel invasive:

  • Direct monitoring: If a manager wants to directly monitor what’s happening, they may put workspaces in a central, open area. Using hardware that logs keystrokes is another type of direct monitoring.
  • Email monitoring: Email monitoring ensures that everything being sent from a company email address is in-line with the company’s values. It will also clear out spam before it reaches an inbox, which helps the employee do their job more efficiently.
  • GPS monitoring: Depending on the type of job an employee performs, GPS monitoring may or may not be worthwhile. For example, it’s best when used for the employee’s safety and to prevent accidents, like in the fleet industry. GPS tech can monitor how often a driver hard brakes or speeds, and an in-vehicle buzzer can alert the driver to risky driving so they can improve.
  • Network monitoring: In order to keep the company’s network secure and free of viruses, it’s necessary to monitor it. Network monitoring includes tracking the content that’s sent over the network and monitoring who is accessing files.
  • Software monitoring: For companies with dispersed teams or remote workers, software monitoring allows managers to keep an eye on what’s happening even when they’re not in the same physical location as employees. Software monitoring logs information like changes to files, conversations, and screenshots. 

Regardless of which types of monitoring you decide are right for your business, you have to let employees know how they’re being monitored. You should also have employees sign to acknowledge that they understand how and why they’re being monitored. If your monitoring strategies change, you should update employees right away, preferably before the changes are put in place.

Ethics and Legalities of Employee Tracking

If you don’t approach employee monitoring the professional way, a lot can go wrong. If you neglect to let the employee know they’re being monitored, they may feel betrayed and concerned about working for you. They may wonder, “What else don’t I know?” 

Even if they’re aware of the monitoring, employees may feel like their privacy is being invaded. They don’t want a micro-manager who needs to see every single thing they do at every moment of the workday. They’d rather work for someone who trusts them. 

Furthermore, certain states have specific legal guidelines to follow. For example, in Connecticut, employees cannot monitor employees without getting consent first. Ensure that your organization is legally compliant in order to avoid issues down the road.

Alternatives to Employee Tracking

Consider why you want to track your employees. There may be another way to achieve the same results. For example, let’s say you’re worried that employees are wasting time at work. They seem to be meeting deliverables and deadlines, but every time you walk into their workspace, they’re on social media or chatting with one another. Instead of monitoring what they do to catch them in the act, talk to them to find out if they’re bored or not challenged enough at work. The problem could be that they don’t have enough to keep them busy.

Here’s another example: Let’s say you need to cut costs, so you want to see who’s clocking in late or leaving early. Unless you have a good reason to think this is happening, a better first step is to audit the workplace and see where waste can be reduced. You may discover that you’re regularly replenishing inventory that isn’t actually being used or that you can use alternative packaging that’s less costly and wasteful. 

Final Thoughts

There are times when tracking is useful to both the company and its employees. For example, applicant tracking systems make it easier for companies to source potential hires and go through hundreds of job applications to hone in on the best ones. For the applicant, that means they’ll get a response sooner rather than later because managers don’t have to manually sort through tons of applications. 

On the other hand, some employee tracking feels unethical, giving employees the impression that they’re not trusted by the company they work for. Getting to the root of the issue and determining why you want to track employees will help you decide the best way to monitor them or if they have to be monitored at all.

The Biggest Recruiting Challenge and 3 Effective Ways to Tackle It

Learn how to successfully tackle the biggest recruitment challenge – talent shortage! 

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What is the biggest recruitment challenge?

Recently, we did an extensive audit to find out what is the biggest recruiting challenges HR professionals struggle with. To find out, we talked with our customers, reached out to the talent acquisition community and consulted global talent acquisition studies and research.

What we found out is that talent shortage is the No. 1 hiring challenge today. A study by the National Federation of Independent Business has found that 87% of HR professionals reported “few or no qualified applicants” for the positions they were trying to fill.

Unfortunately, this problem will only get worse. According to the McKinsey Global Institute study, in 2020 companies in Europe and North America will need 16 to 18 million more educated employees that are going to be available.

So what can you do to successfully tackle this common recruiting challenge?

Top 3 strategies to tackle the talent shortage

Here are the top 3 strategies guaranteed to help you tackle the biggest recruiting challenge – talent shortage:

1. Attracting passive candidates

According to LinkedIn’s research, 70% of the global workforce is made up of passive talent who aren’t actively job searching. If you want to attract these passive candidates, you need to define and implement an effective employer branding strategy. You need to tell a compelling story about your company, showcase your company culture and get candidates excited to join your team.Create an attractive, responsive and branded career site and career blog, where you can present your employer brand and show candidates why your company is a great place to work. You’ll do that by presenting photos of your employees and your office, sharing employee testimonials and writing about the interesting projects and new technologies your teams are working with. 

2. Sourcing candidates

Unfortunately, building and presenting an attractive employer brand isn’t enough. Passive job candidates aren’t actively looking for a job, so they won’t be checking your career site – unless you give them a reason. In order to get their attention, you need to proactively reach out to your perfect candidates.

But first, you need to find them. Luckily, with modern recruitment tools such as TalentLyft, you easily scour the web and find great candidates with just a single click. Once you find them, make sure that you send them effective, personalized cold recruiting emails

3. Building talent pools

Finally, you need to build your talent pool and fill it with candidates eager to join your company. That way, you will have a pool of interested, qualified candidates you can tap into when you have a job opening. 

There are many ways to build your talent pool. You can invite potential candidates to join your talent network, fill your talent pool with attendees of your local events, workshops and meetups, organize online webinars, open career days and job fairs, etc. 

How HR Can Help During Tax Season

While HR is generally seen as being associated more closely with payroll than taxes, there is a huge overlap between the two. This means that at some point any given business will end up relying on its HR team to help in ensuring that its taxes are filed and paid appropriately. HR professionals can provide invaluable help with both employer and employee tax filing if they educate themselves, stay organized, and keep up to date on the ever-changing tax code.

Both Employers And Employees Rely On HR During Tax Season

Though HR professionals are by no means tax experts, their role within a business often leads to tax questions from both employers and employees. A well-trained HR team will be able to address questions from both with ease, whether they are related to personal or business taxes. HR departments are the main conduit of communication between organizations and employees, and it is important that they be able to help either when it comes to tax preparation.

The tax code changes relatively regularly, so it is to be expected that employees may have questions that go beyond how to appropriately fill out a W-4. For example, many employers encourage their employees to open health savings accounts, and employees who do might find themselves wondering what contributions to their HSA are deductible or what the limit for annual contributions might be. HR staff should be prepared to assist with these questions as it will ultimately help both the employee and the organization.

Assisting your employer with proper filing and helping employees with any questions they might have is important as an HR professional, however, there are limits to what can be done. HR teams can give as much advice to employees as they like regarding how to fill tax forms like a W-4, but filling one out for an employee is illegal. Understanding the limitations of how much an HR department can and cannot do helps to maximize efficiency while reducing any legal risk to the organization.

Organization Is Key

When HR teams assist a business with the proper filing of taxes, it is of utmost importance that they maintain a high level of organization. Keeping an accurate record of tax records through digitally scanning them and avoiding using easily lost physical documents is essential. Additionally, keeping a detailed log of business expenditures within the HR department and any documentation that might prove useful when filing taxes should be a priority.

Timekeeping is also incredibly important for HR professionals. Keeping track of nonexempt employees’ hours worked is essential in order to remain compliant with both national and state tax authorities. Doing so will prevent headaches in the long run and make the job of filing appropriately that much easier.

The ability for HR professionals to keep tax-relevant documentation organized is increasing rapidly. This is due largely in part to the rise of advances in cloud storage and big data. These new and powerful technologies allow HR professionals to not only execute their daily operations more efficiently but to keep important information like tax documentation organized and readily available as well. Despite the ease of the cloud for storage, however, it’s imperative that HR professionals understand how to make and keep backups of all important data as well, in case of emergency.

Keeping Up With The IRS

The IRS processes around 240 million tax returns every year generating nearly $3 trillion in tax revenue. While this is impressive, the IRS relies on both private citizens and companies alike to file their taxes promptly and appropriately in order to avoid having to perform an audit if there are any discrepancies detected. Avoiding an audit is obviously preferred for any organization, so ensuring that all levels of an organization, including the HR department, are well versed in recent changes to tax code is a good idea.

The United States tax code recently saw its most substantial reform in over 30 years in the form of the Tax Cuts and Jobs Act. The changes made to the tax code by the Tax Cuts and Jobs Act have far-reaching implications for both employees and the organizations that employ them and because of this, it is imperative that HR professionals understand how the changes to the tax code affect their business. 

Payroll systems had to change across the board after this legislation passed as it affected individual income tax rates and brackets. Additionally, the Tax Cuts and Jobs Act eliminated the ability to deduct the expenses from popular employer-provided fringe benefits such as deductions for parking and transportation expenses for employees. 

In an era where transparency is increasingly appreciated by employees, especially when it comes to salary and payroll, it is important for HR professionals to be able to explain these changes if questions arise. While there is no certainty what future tax code reforms might hold for employees and organizations, HR professionals would be wise to remain up to date on any changes that might affect them.

HR teams are some of the most important and unsung aspects of any business or company, and the ability to assist both employers and employees with tax filing questions adds yet another notch to an already impressive list of skills. If HR professionals stay on top of keeping the appropriate documentation organized and accessible and stay on top of any changes to the U.S. tax code, they will be more than equipped to answer nearly any question asked of them.

ATS vs Recruitment Marketing Software: What is the Difference and Why do You Need Both?

What is the difference between Recruitment Marketing Software and ATS? And why do you need both of these tools to gain advantage in today’s ultra-competitive market?

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What is ATS and how does it enhance hiring process?

An Applicant Tracking System (ATS) is a software designed to help HR teams track and manage applications, as its name suggests. An ATS appeared in the nineties, when HR teams’ biggest struggle was managing numerous applications and selecting the best among them. 

In other words, an ATS is designed to help HR teams improve their hiring process after they receive applications. As such, it doesn’t help HR teams to tackle the greatest challenge of modern time recruiting – attracting passive candidates. 

An overwhelming majority of today’s candidates are passive candidates, who aren’t looking for a job. According to a recent Glassdoor research, 76% of hiring managers admit attracting top talent is their greatest challenge. This is why a new tool called Recruitment Marketing Software has appeared – to help ambitious HR teams improve their hiring process prior to receiving applications.

What is a Recruitment Marketing Software and how does it enhance hiring process?

A Recruitment Marketing Software is an innovative software program designed to help HR professionals attract great potential candidates and turn them into applicants.

Using a Recruitment Marketing Software will enable you to build awareness about your employer brand, get potential candidates interested in working at your company and to drive them to apply for the open positions your company has available.

With a Recruitment Marketing Software, you can showcase your employer brand through different channels, such as your company’s career site, social media, job boards, recruiting events, etc.

Want to try out a powerful ATS & Recruitment Marketing Software?

Take TalentLyft for a test ride! 

Try our ATS and Recruitment Marketing Software for free. Yep, completely free for  14 days, no credit card is required to sign up and you can cancel anytime.

Summer Slump at Work? Read this!

Feeling the summer slump at work? Here is how to get back into your hardworking, productive mode!

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Are you struggling with summer slump at work?

If you’re stuck in office while all your friends are sending you beach photos, it’s no surprise that you feel a bit demotivated at work. 

Summer is a time for relaxing in the sun on the beach, not for working. It’s completely normal that you mind is wandering to wandering to thoughts of flip flops, beaches and mojitos. According to a recent study, workplace productivity is estimated to drop 20 percent during the summer.

However, this doesn’t mean that you have to give into this unproductive mode!

Get inspired and stay productive!

To help you and your team get back on track, we gathered a few great motivational quotes:

“Success isn’t always about greatness. It’s about consistency. Consistent hard work leads to success. Greatness will come.”

– Dwayne “The Rock” Johnson, actor

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“Success is no accident. It is hard work, perseverance, learning, studying, sacrifice and most of all, love of what you are doing or learning to do. “

– Pele, Brazilian footballer

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“I never viewed myself as particularly talented. Where I excel is ridiculous, sickening work ethic. You know, while the other guy’s sleeping, I’m working. “

– Will Smith, actor

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If you’re looking for more inspiring and motivational workplace quotes, check out our collection of:

Don’t forget to share these inspirational quotes on social media! Spread the love and inspiration. 🙂

 

Are You Making the Most Out of HR Analytics?

How mature is your HR analytics strategy?

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How advanced is your HR analytics strategy?

Today, most companies are collecting vast amounts of detailed data about their people. However, only a small percentage actually conducts a deeper analysis of this data and uses gathered insights to take action. 

Companies that act on the gathered data and analytics to solve critical business issues will surely be able to out-hire, out-manage and out-perform their competitors. Are you among them?

How mature is your company’s HR analytics strategy? Are you just getting started with some basic level of HR analytics? Or you’ve mastered even the advanced HR analytics best practices?

4 levels of HR analytics 

We distinguish four levels of people analytics, from basic to most advanced: 

  1. Descriptive analytics
    Descriptive people analytics provides an answer to the following question:
    “What has happened?”
    This type of people analytics is defined by using data to understand and reflect on what has already happened in the past.

  2. Strategic analytics
    Strategic people analytics provides an answer to the following question:
    “Why did this happen?”
    This type of data analytics is defined by developing causal models and searching for the reasons behind a certain occurrence.

  3. Predictive analytics
    Predictive people analytics provides an answer to the following question:
    “What could happen?”
    This type of data analytics is defined by using statistical models and forecasts techniques that can predict the future based on the past.
  4. Prescriptive analytics
    Prescriptive people analytics provides an answer to the following question:
    “What should we do?”
    This type of data analytics is defined by using simulation algorithms to analyze a number of different possible solutions in order to choose the one most likely to provide the desired outcome.

Learn more about the reasons why HR analytics is a new HR imperative!

How to Hire for Diversity?

Learn the best practices and tips for hiring more diverse candidates!

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How to hire for diversity?

If you want to improve diversity and inclusion at your workplace, you should start by hiring more diverse candidates. 

In this article, you will learn how to incorporate best practices for hiring more diverse candidates at every stage of your recruiting process. Read on to learn:

  • How to attract more diverse candidates?
  • How to incorporate diversity values in your selection stage?
  • How to ensure greater job acceptance rate among diverse candidates?

Attraction stage: How to find more diverse candidates?

Here are some great, actionable strategies for attracting diverse candidates:

  1. Source for diversity
    Add terms like “employee resource group” and “ERG” to your Boolean search strings, along with phrases related to different types of diversity focused networks (such as “black,” “Latino,” “disabilities,” “women in IT,” or “LGBTQ”).
  2. Post your jobs on job boards specialized in diversity
    Job boards dedicated focused on minorities and diversity are also becoming more common these days. Did you know that you can find a diversity jobs section on Indeed? Make sure you also post your job on Diversity Working, the largest online diversity job board.

  3. Encourage diverse employee referrals
    Encourage your employees to recommend diverse candidates by offering additional bonuses and prizes. For example, Intel awards double referral bonuses for diverse hires.

  4. Highlight diversity on your career site
    Highlight your company’s dedication to diversity and inclusion. Check out Schneider Electric’s career page focused on promoting their company’s inclusion and diversity initiatives. 

Selection stage: How to select more diverse candidates?

There are 2 proven strategies for incorporating diversity and inclusion at the selection stage of your hiring process:

  1. Organize diversity training for recruiters
    Help your recruiters and HR managers learn more about their unconscious biases we all have. Luckily, with a little bit of education and training, everyone can learn how to avoid bias in recruitment.

  2. Implement a blind hiring practice
    Blind hiring is the practice of obscuring job candidates’ personal information such as a photo, age, gender and name. That way, recruiters and hiring managers make their decision solely based on qualifications, experience, education, references and the quality of the person’s resume.

Offer stage: How to improve job acceptance rate among diverse candidates?

67% of job seekers said a diverse workforce is important when considering job offers, according to Glassdoor research

Thus, make sure that you highlight your company’s commitment to diversity and inclusion. Proudly present all of your company’s diversity and inclusion initiatives. As well as your diverse employees’ testimonials. Show your diverse candidates that you have cultivated a welcoming company culture that accepts and celebrates differences.  

How HR Professionals Can Be More Supportive of Parents

In about 46% of two-parent households in the United States, both parents work full time. This is a shift from the past, where more women stayed home to raise the children and take care of the family. 

More parents want to keep working and further their careers after having kids. It’s possible to do so, but companies and large organizations need to take steps to facilitate continued career growth for these individuals. Businesses need to support parents by offering a better work-life balance. This will help them attract new employees and retain current ones. 

There are many benefits to supporting parents within your company. It starts with understanding what parents really value and what they need. With that in mind, let’s take a look at how you can be more supportive of the parents who work for you or will work for you in the future.

What Expecting Parents Really Want 

When companies and HR professionals are considering which benefits to offer their employees, they have to hit the right marks. One survey suggested that 80% of employees would prefer a better benefits package over a raise. Benefits are likely even more important for parents or for those who are expecting. 

Support for new parents or those who are about to have a baby can make a difference in employee retention. For expectant couples, supportive benefits can include things like paid maternity and paternity leave, as well as insurance benefits that will help employees deal with the medical expenses of having a new baby. 

It’s also essential to avoid discriminating against expectant mothers in your workforce. Pregnancy discrimination in the workplace is unethical, but it still happens. By making sure your policies reflect a positive and non-discriminatory attitude toward pregnant employees, you can create a more welcoming and comforting family atmosphere within your business. 

The number one priority for any pregnant woman is to keep herself and her baby as healthy as possible. Here are some ways to make your workplace more inclusive of pregnant mothers:

  • Your company can support that by offering things like healthy complimentary snacks or water. 
  • Make sure restrooms are easily accessible for everyone. 
  • Offer exercise or yoga classes for expectant mothers who want to stay active. 
  • Encourage more flexibility in their hours so they can have more time at home to rest and get some sleep

It’s a good idea to include some pre-birth perks for expecting dads too. Paternity leave is important and should be a part of any benefits package. Also consider sponsoring birthing classes and encourage expecting fathers to join support groups to know what to expect. 

As with expectant mothers, flexible hours for fathers-to-be can also be a big draw, as they allow men to go with their partners to doctor’s appointments, classes, and more. This can be especially helpful for same-sex couples who are going through the adoption process or using a surrogate. Some companies actually offer surrogacy compenasation, which can be huge for same-sex couples or couples who can’t have children on their own. 

As you can see, none of these offered benefits or resources have to blow your budget. By making a few small policy changes, you can create a complete shift in how pregnant women and even fathers who are expecting are viewed and treated within your company. 

Better Benefits for Families

For individuals or couples who are already parents, employers can offer more paid time off, daycare services, lactation support services, and more flexibility. 

Offering various family insurance plans, as well as life insurance plans can also attract new parents to stick with your company, since they’ll know they can be protected if anything were to ever happen. Life insurance can be used to protect a family, to pay off debts, or for parents to simply have peace of mind when it comes to leaving something behind for their children. Even if your company chooses not to offer life insurance, it’s a good idea to have a few agencies in mind to work with so you can point your employees in the right direction. 

New parents might want to return to work, but that can be hard to do with a baby or young child at home. To show your employees their real value, offering work flexibility can make a huge difference. This includes offering non-traditional hours or even work-from-home opportunities. Thanks to technology, working from home has become very popular. It’s a great option and can be very successful for single parents, and there are many companies that cater to these families. By offering that kind of flexibility, your employee is more likely to take the job seriously from home, and they won’t experience burnout or resentment from having to leave their family. 

How HR Makes a Difference

When it comes to supporting new parents, your focus should be less about money and more about relationships. While a raise is always nice (and likely always appreciated), you can form a better lasting relationship with your employees by showing them you care about their families, their health, and their overall well-being. 

When your employees are ready to get back to work, keep the benefits rolling, and they’ll be likely to ease back in comfortably. Companies like Amazon offer “on-ramp” programs that help employees to start working again at a comfortable pace. It starts out with a shorter schedule and offers a lot of flexibility and paid time off. 

If you’re not sure what the parents working for you really want, don’t be afraid to ask! Taking an interest in your employee’s wants will show them that you care about their lives, and they aren’t just a number to you. Being a parent and working at the same time isn’t always easy, and it typically requires a lot of juggling. You can make it easier on your employees, boost their sense of self-worth, and give your business a boost when you offer the right kind of support.

Why You Should Invest in Personal Finance Training for Your Employees

Personal finance and budgeting play a role in everyone’s life. It’s no secret that your ability to wisely allocate financial resources has a significant impact on your quality of life. 

Unfortunately, most individuals — including your employees  — are probably not as financially capable as they ought to be. High schools and colleges have stopped making financial literacy a requirement to graduate, and so many individuals are completely unaware of personal finance basics of personal finances. 

At this point, you might be wondering why you, as an employer or someone in HR, should care about this. Why should it matter to you that employees can successfully manage their finances? Well, here are just some of the reasons why you should invest (or advocate that your business invest) in personal finance training for employees:

Less Stress, Higher Productivity

For one, stress as a result of personal financial mismanagement is a common problem of the workforce today, resulting in lower rates of productivity and ultimately affecting a company’s bottom line. About 68% of employees are not fully engaged at work, and much of this can be attributed to financial stress. 

This is backed up by Dr. Thomas Garman, a Virginia Tech professor, who states, “Workers waste 20 hours of company time a month thinking about and dealing with personal finances.” Further, 40% of employees have even openly admitted that personal stress greatly affects their productivity at work.

With these figures in mind, teaching your employees about personal finance management can only be a win-win. Most employee learning takes place during work hours, so it makes sense to offer opportunities for employees to learn more about personal finances. In return, they will get rid of financial stress and become more productive. 

Retain Top Talent

Providing a benefit like personal finance training for employees can also help you attract and retain top talent. In fact, a Society for Human Resources study found that “employees are looking to their employers for help with managing their financial wellness.” Today, with the rise of the gig economy, many workers are able to control their work hours and get paid for extra time on the clock. Given the fact that the gig economy as a whole can offer more pay, this provides the means for employees to feel financially secure while also attracting top talent. 

Jobs as part of the gig economy rarely come with benefits, so including personal finance training in your benefits package gives yourself an edge when it comes to recruiting talent. Thus, including financial wellness training as a part of an employee’s benefits package can yield positive results. This is a great way for a company to demonstrate their commitment to the well-being of those they employ.

Ripple Effect on Society

An often-overlooked advantage of providing finance training for your employees is the ripple effect it can have. Giving employees this information enables them to spread financial best practices to friends and family, ultimately improving the well-being of those around them. While this may not immediately and directly benefit your company, it does create for a more financially stable community in the long-run. In turn, this new, more skilled society will help your business’ bottom line. 

These are just a few of the reasons you should consider financial training benefits for your employees. As you can see, alongside enhancing employees’ lives, your company stands to benefit greatly from this inclusion. The best part is that personal finance training programs are actually quite easy to implement. Here are some tactics to consider: 

Give a Financial Self-Assessment 

The first step in promoting the financial wellness of your employees is gauging how much they know about personal money management. People often struggle with planning their finances because they neglect (or intentionally avoid) thinking about them critically. As a result, they are unable to adequately plan for the future.

A financial self-assessment solves this problem and allows for both managers and employees to learn about their personal financial capabilities. Once this is done, your employees can identify pain points in their financial planning and take the appropriate steps to make changes. There are many free financial assessment quizzes available online that you can hand out to your employees. A good starting point for a personal finance self-assessment can be found at the Consumer Financial Protection Bureau website.

Offer Classes/Training Seminars 

Fixed classes or seminars are effective ways of teaching financial wellness on an ongoing basis. You could devote one hour a week to a training seminar where employees could be given the chance to hear from various experts and financial planning. Each seminar could cover a different topic under the umbrella of personal financial wellness, including how to improve and maintain good credit, how to pay off credit card debt, how to plan for retirement and a child’s education, how to invest, and more. 

Even if you aren’t in the position to host seminars, you could consider giving your employees the option to enroll in online money management classes and cover the cost. Alternatively, you could offer premium access to sites like SkillShare or Udemy that offer classes from experts across a range of topics. 

Provide Budgeting Tools

Budgeting is key to personal finance management. Make sure your employees know basic budgeting skills — you could even start with the “give, save, and spend” concept that is used to teach children about money. From there, teach employees about the principles of setting up a household budget such as identifying income, tracking spending, and determining goals. You could also keep an eye out for financial tools that could help your employees. These include free retirement planning tools, investing tools, budgeting apps, and more. 

Spread Awareness About Cost-Effective Options

Another initiative that is easy to implement is spreading awareness about resources that outline how to get the most cost-effective services. Choosing cost-effective options can increase savings and aid money management efforts. One way to do so is to teach employees how to evaluate various deals for everyday services through a monthly email newsletter. 

For instance, you could send out a newsletter that details how to pick the best internet deal for one’s home, covering pointers like looking for plans in the “Back to School” period in August. The following month you could send out a newsletter about how to pick the best car insurance, and what to consider when choosing one. Spreading awareness about ongoing deals that you have researched, as well as knowledge about how to choose cost-effective options is a good way to educate employees about making financially sound decisions. 

Promoting the financial wellness of your employees is a great investment, benefitting both your company and your employees. Use these tips to introduce personal finance training into your employee benefits package to build a more productive and financially savvy workplace.