From creating employee emergency relief funds to new employee benefits, companies are doing all they can to help their people meet their financial obligations during the pandemic.
Today, nearly half of all Americans are living paycheck to paycheck—often having to work multiple jobs to meet their financial commitments. And many of these people are frontline workers who are working tirelessly to ensure businesses and communities keep running during COVID-19.
A 2020 PwC survey found that 58 percent of employees are stressed about their finances, and more than half of these respondents say their finances have been a distraction at work. What’s more, 53 percent of the U.S.-based respondents say they don’t have enough money to cover at least three months of expenses.
So what can employers do to help workers reduce mental stress and achieve greater financial stability? They can go beyond bi-weekly paychecks and provide workers with the tools, resources, and insight they need to better meet their financial obligations. Here’s how.
Ninety-one percent of Americans say they want to develop better money habits this year. But for many, knowing where to start can be overwhelming. You can help take the anxiety out of navigating the world of personal finance by providing short, prescriptive content to workers regularly.
Give them step-by-step articles or videos they can quickly watch in their own time. For example, the Consumer Financial Protection Bureau and The Balance offer free educational content and easy-to-follow best practices—from budgeting to paying off debt. Also consider distributing articles or videos over time as part of a regular communication channel.
Beyond education, you can also give workers the tools they need to put their financial wellness plan into action. And because not all employees have the same goals, it’s important to understand the type of financial challenges they have.
A worker who’s paying off student loan debt may want an expenses tracker, while someone who is looking to save for the future may be interested in a savings or retirement planning tool. One approach is to survey workers to understand what financial challenges and priorities are most important to them.
Businesses in industries that employ a large number of frontline workers, including retail and hospitality, are turning to early wage access systems. These systems empower employees to access their wages earlier—so they can pay their bills sooner using earned wages based on hours worked, instead of borrowing at high interest rates. Combining this with educational content around budgeting, or a savings tool, will help your people to balance their short-term and long-term finances.
Delivering a seamless user experience for your people is important—and it’s more achievable if you have one system to manage their time, pay, and HR needs. Not only does this allow you to create personalized financial wellness experiences, or what we call “journeys” for different segments of your workforce in Workday People Experience, but it allows you to roll out tailored campaigns that educate your employees about how and when to use on-demand pay. In addition to Pay On-Demand, you can also use flexible payments in Workday to help offer loans to workers during difficult times, and set up repayment plans to help them manage their payments. Together, this ensures your people are mentally, physically, and financially healthy.
We’re introducing Pay On-Demand into Workday Payroll to help you better support your employees and their financial needs. Take a look at a financial wellness journey with Workday People Experience and Pay On-Demand below, and learn more here.