Taking Care of the Financial Stability of Employees

Employees are unquestionably one of the company’s most valuable assets. Treating staff properly is one of the most important aspects of fostering a positive work culture. A devoted and loyal workforce is more likely to exist in a company where leaders value their people. Apart from competitive salary and benefits, respect and recognition are two additional aspects that employees value the most, and these characteristics help to increase employee retention and engagement. As a result, as highlighted by PayPal CEO Dan Schulman in this episode on The TED Interview podcast, it is critical for organizations to begin evaluating and improving the financial stability of employees.

When asked about corporations’ influence and control over their employees’ life, Dan says that trust is the most crucial brand quality a company can have. Employees can only completely trust an organization if they are certain that the firm respects their privacy and that their data is safe with the company, according to him. He claims that it is critical for businesses to look after the financial stability of employees, which includes assuring them that their transactions, resources, and data are safe with the organization. He does, however, urge employees to be fully informed about how their data is processed and utilized by the company in order to build confidence. As we shift from physical to digital means of banking, he believes cybersecurity will become increasingly vital. According to him, meeting ends with increasing expenses is becoming difficult for employees with each passing day, causing them financial stress. Dan believes that having financially stable, enthusiastic people working for your company is critical because it helps them feel like a part of the team, which motivates them to provide excellent customer service. He goes on to define ‘net disposable income’ as the money left over after all taxes and basic living expenditures have been paid. Holding financial education programs, increasing salaries, giving incentives, and cutting cost benefits are just a few strategies to give employees a higher quality of life and a profitable approach for taking care of the financial stability of employees. He believes that the expense of valuing your employees and customers will benefit the company more in the long term than the cost of doing so. Understanding your employee’s financial situation is the first step toward making efforts to enhance their financial wellness. He believes it is critical for firms to know whether their employees have the financial resources to save enough to survive financial shocks while also improving their level of living. After that, he recommends enacting the necessary reforms.

Employees that are financially secure are more committed to the business and work more efficiently. As Dan Schulman, PayPal CEO, suggests in this episode on The TED Interview podcast, taking care of the financial stability of employees is hence, critical.