Financial coach Allison Bishop offers tips on how to help employees get a better handle on their money situation.
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Q: I’m getting concerned about some of my employees’ personal finances, but asking questions is uncomfortable. How can I support them without overstepping boundaries?
ACE advises: More than anything else — including work, health or family — personal finances are the top source of employee stress. Like many employers, your concern for your team is personal and genuine. But there are also compelling business reasons to help employees gain better control of their finances.
Studies consistently show that financially stressed employees are more likely to be late, miss work or underperform while on the job. They’re also more likely to seek employment elsewhere. In some cases, financial stress can even motivate fraud.
There are other benefits to improving your team’s financial literacy. For example, it can help employees understand why you allocate business resources the way you do, and how their work contributes to the bigger financial picture. This is especially valuable if you’re considering employee ownership — like an employee stock ownership plan, or ESOP — where understanding financial reports becomes essential.
Start by reviewing existing benefits. Employees may already have access to useful tools — such as through an employee assistance plan, or EAP — but simply may not know about it. You can also let them know that the Finance Authority of Maine provides free access to a financial education platform for all Maine residents at fame.enrich.org.
If you do create an ESOP, consider offering internal financial education sessions using your company’s own reports to build confidence and transparency.
For employees who are struggling, confidential sessions with a financial coach may be the most effective solution. The company can pay for unbiased, individualized help that equips employees to take control of their financial lives.
If you’re looking to support broader cultural change, consider launching a financial wellness program. This might include lunch-and-learn sessions with outside experts, online tools and one-on-one coaching.
You have real opportunities to support your team’s overall health — starting with their financial wellbeing.
Financial coach Allison Bishop is a CPA and former treasurer of ACE. She can be reached at allison@allisonbishop.com
