Financial Stress & Employee Retention

 "Financial Stress and Employee Retention”

By Rob Bacharach

The Car Salesmen’s CFP®

Financial stress will beat down even the strongest of individuals. When stressed about money, we can’t sleep, we’re distracted, we lack the ability to think clearly and execute. Peak performance and

productivity are nowhere to be found. We begin our search for a solution.

It wasn’t until about 10 years ago, with the proliferation of smartphones and social media, that an

abundance of free financial resources became available at our fingertips. Fortunately for younger

generations, social media has helped to make financial literacy cool. Exposure throughout childhood will

naturally lead to greater comfort with personal finance.

However, for those who were not exposed at a younger age, financial literacy can feel like learning a

foreign language. And when are we supposed to find time to learn a second language? Nights,

weekends, in between deals? Most people are not naturally driven to seek advice and educate

themselves with their minimal time off.

Lacking the education and experience to make important financial decisions, employees remain in a

state of perpetual uncertainty. We’ve all been there — stuck in a situation we’re uncertain how to get

ourselves out of. Sometimes, we aren’t even sure whom to ask for help. We don’t know where to begin,

so we do nothing, and our stress compounds.

“Financially-stressed employees are twice as likely to look elsewhere,” states the 2023 PwC Employee

Financial Wellness Survey.

Low-cost solution

SoFi, one of the largest marketplace lenders in the U.S., conducted a survey in 2021. It found:

“Employees are spending more than 9.2 hours per week dealing with financial issues at work and 14

hours total.”

That was before higher interest rates and inflation took the headlines.

Alternatively, when employees believe they are financially satisfied and secure, they will spend less

time, energy and resources searching for solutions. Less stress and fewer distractions lead to a greater

focus on the goals, tasks and objectives in front of them. Retention rises.

If financial confidence and security produce lower turnover, how can executives influence the issues

surrounding financial stress aside from simply paying everyone more money?

Providing financial wellness services, both educational and consultative, is a low-cost initiative

employers may take to improve financial literacy, reduce financial stress and spur higher employee

satisfaction.

Greater satisfaction with one’s employer stems not only from the benefits received but also

from the trust that is built by offering these services. This trust goes even further to reduce turnover.

The data shows employees in need of financial education and guidance are more likely to take

advantage of resources provided by their employer than find their own. Why?

Individuals today have too many options, leading to what’s often called “paralysis by analysis.” Having

vetted resources offered by their employer narrows the scope of the decision-making process.

Want to receive more wealth-building tax strategies like this?

Find me on social @ www.linkedin.com/in/carsalesmenscfp 

www.automotive-wealth.com

Best Regards

ROBERT B. BACHARACH, CFP®

The Car Salesmen's CFP®

Founder & President, Automotive Wealth

_{Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.}

_{This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.}

_{Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through IHT Wealth Management, a registered investment advisor. IHT}

_{Wealth Management and RB Wealth Partners are separate entities from LPL Financial.}