Financial stress is undoubtedly one of the most prevalent and widespread concerns among the working class, especially millennials who are inching closer to retirement every day and have not yet established or opened a retirement savings fund.
Millennials are different from their predecessors in more ways than one- they have witnessed and pulled through two major recessions early in their careers, and the new pandemic fuelled recession is adding a new financial strain. This financial stress is amplified for millennials also because a majority of them face challenges such as student loan debt, high unemployment rates, and most recently, low financial literacy.
A 2017 PWC Employee Financial Wellness Survey discovered that an astounding 65% of millennials reported being stressed and affected by the state of their finances. Approximately a third of the employees confessed to being distracted by personal financial issues at work, while a majority of them spent up to 3 hours a week handling these matters during work hours.
Hence, it is no secret that financial stress can slowly trickle in and affect overall productivity in the workplace. Here’s how HR can help millennial employees in financial planning and ensure their overall well-being and better productivity at work!
- Introducing financial literacy tools
One of the best ways HR can help millennials with financial planning and wellness is by introducing financial literacy tools and programs in the workplace as a means to teach and guide them. This is crucial as these financial literacy tools can help them understand their finances better, suggest a range of options for investing, and even get them out of a personal financial crisis.
Educating employees about the foundations of personal finance, including sessions on how to build healthy financial habits and personal wealth, and making them aware of concepts such as quick instant loans and salary advance loans is one of the best ways to help millennials. This is because when employees have an accurate and good understanding of their finances and financial standing, they will make informed and better decisions to save and make the most of workplace resources to build a suitable retirement plan.
- Encouraging goal-based financial planning
Goal-based financial planning is another way HR can help their millennial employees plan their personal finances in a better and more efficient way. The goals should be prioritized and comprehensive workshops and programs that focus on how to go about goal-based financial planning are a must to help employees plan their finances better.
A detailed financial plan will break down each goal into smaller, more concrete, and achievable milestones, and can help reduce the overwhelming burden of a personal financial crisis.
- Automated investing and smart budgeting
Automated investing and smart budgeting are associated with the actual execution of the financial plan drawn up by employees. This step matters the most, simply because the implementation is one of the most difficult steps when it comes to financial management. Digital tools can help in keeping them on track and accountable, by serving as constant reminders and acting as lucrative platforms for easier investing.
Smart budgeting applications and platforms can help keep a track of the monthly expenditure and finances, while automated investing platforms can help in the automation of the transfer of a pre-decided amount from a checking account to a savings account. Hence, employees save time because the saving and investing bit is taken care of automatically.
- Introduction to quick personal loans and salary advance loans
Finally, it is imperative to educate millennial employees about the latest financial tools and services available at their disposal, such as quick personal loan and salary advance loans. This is important simply because sometimes even the HR isn’t fully aware of their personal financial situation, and a simple introduction to these quick personal loans or salary advance loans can help them directly or indirectly in more ways than one can imagine.
HR leaders need to support and help their millennial employees in financial planning and must chalk our detailed, strategic, and comprehensive programs and workshops to ensure their financial wellness. Quick personal loans, salary advance loans, automated investing, and smart budgeting tools are some of the latest advancements that can help millennial employees plan their finances better, and help them when they’re in urgent need of financial assistance. The solution provided by HR should include modules and sessions for educating, planning, investing, carried out by financial experts and advisors to help them reach their goals. At EarlySalary, we’re helping to help with financial wellness solutions.
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