Financial stress can have a major impact on employees' mental health during the holidays. When employees feel financially stressed they are often less productive and less engaged.
Throughout our years as experts in the benefits business, employers continuously ask us how they can help their employees to be more financially secure. One of the best places to start is with budgeting and debt management. There is no better time to dive into this topic than the present, so let’s get started.
Begin with Employee Financial Education
Encourage employees to list out all of their sources of income and then on a separate list all of their expenses. The expense list should begin with fixed amounts such as rent, then list estimates for variable ones such as groceries or dining out. Then subtract all the expenses from income. What’s left over is available for gift giving and holiday spending. Encourage employees to open a holiday savings account for next year, so they can get a head start on their financial wellness journey.
Next, it's time to encourage employees to think about their holiday budget - what are all the things they need to spend money on during the holidays- gifts, activities, household decorations, groceries etc. Inspire realistic estimates and remind employees to not spend more money than their income, savings, and budget allow. If they overspend this could result in debt.
Encourage your employees to avoid debt, especially as interest rates rise and the cost of living continues to increase.
DIY (Do It Yourself) Gift Alternatives
Making a gift with your hands is much more meaningful than surfing the web and doing a simple click and buy. Not only does it mean more to create it yourself but also it costs way less.
Are your employees creative? Do they have any talents? Can they make something alongside an expert?
Consider challenging employees to think about what they could make that is unique and will leave a long lasting impression.
Spending Time Together is More Important Than Expensive Gifts
If your employee’s budget is tight, encourage them to remember what Christmas is all about. The holiday season is about the quality time that is spent with loved ones and not just presents. Encourage your team members to plan a day out in nature to go snowshoeing and grab hot chocolate or have a family and friends board game night.
Encourage Employees to Shop Early
Lots of stores have deals before Christmas because they are aware that more people are beginning to shop earlier each season. Your employees can save bucket loads of money by carefully planning and searching for great deals. Another great benefit is that spending is spread out over several months and not all in December.
Establish a Price Limit with Those Closest to You
Overspending is one of the most common occurrences during Christmas. Partners, friends, and family can establish a cost limit on gifts in advance. This can be fun as people must be creative and thoughtful to stay within that limit. Champion this view as a smart, fun one that everyone may be grateful and excited for. They may be amazed at the joy a well thought-out gift for as little as $20 can bring.
Cashback Incentives
Cashback sites allow you to get money back when you make purchases. Yes, this is a real thing. Not everyone takes advantage of these incentives which could be saving them hundreds of dollars over the festive period.
Here are 7 Cashback Sites that will help you save money this Christmas.
Plan Ahead for Christmas 2023
Encourage employees to plan ahead to Christmas next year as soon as they are finished with this one.
Why? Right after the holiday season there are often fantastic deals, not only then but throughout the whole year. Encourage employees to pick up stocking stuffers during the year to relieve some of the budget stress next year. Motivate your staff to start a savings account for next year. Put a little bit away each pay.
Conclusion
Proactive employers take steps to help their employees relieve financial stress. This Christmas, help your employees to have a financially better holiday season so that they enter the New Year with less debt, less stress and a plan for next year.
How Your Organization Can Navigate the Impact of Employee Financial (Un)Wellness
As an employer, financial wellness needs to be on your radar.
Your people are looking to you for information and support. If you don’t care about their financial health then you will simply be left behind as an organization.
