If you have an employee or even employees who are in financial difficulty, you might consider helping them out. A lot of businesses do this, and there are various routes to take if you are interested in exploring this possibility. But should you do it? Well, the answer is generally yes. If you can, you should help your employees out because this type of behavior is going to encourage them to remain loyal to you and ultimately could lead to a stronger team dynamic. However, at the same time, it’s important that you are in control of the situation and that there is no possible way that they can take advantage of your business through this generous offer. Let’s look at the options here.
Provide Financial Advice
You have a duty of care and a responsibility to look after your employees, both physically and mentally. It’s debatable whether this extends to their financial situation, but financial stress could impact the quality of their work or service. So, you might want to think about providing your employees with financial advice. Some employees are going to turn towards quick loans on the internet, and you may want to steer them towards more traditional funding. You can hire a financial expert to help employees in need. Or, alternatively, you might want to point them in the direction of someone who can help outside of your business. At the very least, it might be worth letting them know they can talk to you or someone in your company if they are in financial strife.
Let Them Borrow Their Next Paycheck
This is an option that many businesses do use to help their employees. The general idea is simple enough. If employees are experiencing financial problems, they can borrow their next paycheck. This can provide them with the money they need to pay off the money that they owe. Most employees won’t take this option up every month so it won’t put you in a position where you are paying too much out at one time. But it can help take the pressure off an employee who is in a difficult position due to an expensive bill.
Help Them Invest
You might be providing a pension for your employees. If that’s the case, you will be setting up a pension pot for each employee and saving some of their paycheck. Taking things one step further, you could also be investing it for them. You will definitely need to hire a financial expert to take this step or use an outside company to get the best deal on the market. With the right investment, a pension could grow to massive levels, and that’s what you want for workers who may have been with you since the start of your business.
As you can see then, you don’t have to turn your back on your employees if they are having difficulty with their finances. You can, with the right steps, help them improve their situation whether that’s by giving them advice or even providing them with an advance on their pay.