Advivo partner, Dale Edwards, outlines practical steps that small business owners can undertake to support the financial well-being of their employees.
As a small business owner, your employees’ financial well-being plays a huge role in the overall health of your business. A financially stressed employee is less focused, less productive, and more likely to seek other employment. The good news? There are straightforward, effective steps you can take to help, some with little to no financial burden. Below, I’ve summarised some options for you to consider, along with an indication of what each option is likely to cost your business in $ to implement.
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Offer Flexible Work Arrangements (Minimal Cost)
Allowing flexible hours or remote work, even part-time, can significantly help employees reduce costs associated with commuting, childcare, or other personal responsibilities. Flexibility gives employees more control over their time and expenses, which can lead to better financial stability and satisfaction.
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Provide Financial Education (Minimal Cost)
Many Australians struggle with managing their finances, and your employees may be no exception. Partner with a local financial advisor or accountant (such as Advivo) to offer workshops or online courses on budgeting, saving, and debt management. You can even share resources such as articles or free financial tools through email or the company intranet.
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Introduce a Salary-Sacrifice Program (Low Cost)
Offering a salary-sacrifice program allows employees to pay for certain expenses, like superannuation or a car, directly from their pre-tax income. It’s a win-win situation: employees save on tax, and it comes at no cost to you apart from the initial setup.
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Paid Mental Health Days (Moderate Cost)
Sometimes financial stress can impact mental health. Offering paid mental health days gives employees an opportunity to regroup without the worry of lost wages. You don’t have to offer these days frequently—just a few per year can go a long way in helping employees manage stress.
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Access to Low-Interest Loans (Moderate Cost)
While not always common for small businesses, offering low-interest loans or salary advances can provide employees with a crucial financial cushion during tough times. If you have the means, establishing a small, revolving fund to provide emergency loans (capped at a certain amount) could help employees avoid expensive payday loans or credit card debt.
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Encourage Superannuation Awareness (Minimal Cost)
Many employees overlook the importance of superannuation. Providing simple education on super choices, explaining the benefits of consolidating accounts, or even encouraging employees to check if they’re getting the right employer contributions can have a lasting impact on their retirement savings.
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Review Pay and Benefits Regularly (Financial Cost)
While small businesses may not have deep pockets, it’s worth regularly reviewing pay and benefits to ensure you’re offering a fair wage. Consider modest pay rises, even if it’s just to cover inflation. If a salary increase isn’t possible, think about adding benefits like paid professional development or a wellness allowance (which could cover gym memberships or mental health services).
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Celebrate and Reward Milestones (Low to Moderate Cost)
Recognising and celebrating employee achievements or anniversaries with small bonuses or gift cards is a great way to boost morale and financial well-being. These don’t have to be large – just enough to show appreciation and make a difference in their personal finances. A $50 gift card or an extra day off could make more impact than you think.
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Support Side Hustles (Minimal Cost)
If your employees have side hustles or freelance gigs, consider being flexible with work hours or allowing them to use their skills in your business. Encouraging entrepreneurship on the side, as long as it doesn’t conflict with their role, shows that you value their financial goals and personal growth.
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Negotiate Group Discounts (Minimal Cost)
Use the power of your small team to negotiate group discounts for services like private health insurance, gym memberships, or even mobile plans. By leveraging collective purchasing power, you can offer your employees savings that wouldn’t be available to them individually, with little to no cost to the business.
Final Thoughts
Supporting your employees’ financial well-being doesn’t have to break the bank. Small changes in the way you approach benefits, flexibility, and financial education can make a huge difference. Employees who feel secure financially are more engaged, productive, and loyal – investing in their well-being is ultimately investing in the future of your business.
