As a business owner, you are well versed with the fact that employee productivity is what determines how well your targets are met, and how well your organization grows. Moreover, you are also probably aware of the fact that productivity is something that fluctuates. When your employees are functioning within a range of productivity, it is all well and good, but what happens when that productivity dips to a point that is lower than what can be justified?
By including options in their contract that allow them to plan their finances in a comprehensive manner, or by simply offering them organization based benefits with the bank you work with, you can ensure high productivity at all times. Here are some ways in which financial planning can increase productivity:
1. It reduces stress
When employees know that their finances are taken care of from the perspective of savings or growth, they tend to be less stressed out. As a result, they can focus better on their tasks and improve their productivity. Conversely, employees that are stressed tend to make more mistakes, be less satisfied with their work environment, and jump ship more easily.
2. It improves loyalty
When you offer your employees the chance to plan for their future, you end up with employees that are more likely to be loyal to your organization. This does not just mean that they will not leave your organization at the first chance they get, but also that they will be more invested in the success of their projects, and more likely to participate in initiatives that help grow the organization as a whole. All of this contributes to a better morale, which ultimately leads to better productivity as well.
3. It improves focus
Employs that are financially literate and cognizant of the different ways that they can benefit by working for your organization tend to be more focussed on the job. Since they are aware of the benefits they get by participating in certain programs exclusive to your organization (such as certain slabs for year-end bonuses), they are more likely to work harder and ensure that their benefits are as good as they can make them.
4. It provides cash-less incentives
Cash-less benefits that help with financial planning can be used as an incentive program based on certain targets or KPIs. For instance, allowing employees to design their own benefits package once they reach a certain level in the hierarchy of the organization or complete their KPIs for their existing level can help you increase productivity while keeping your employees happy. Employees who are financially literate will be able to truly appreciate how great the opportunity to design their own benefits is.
5. It keeps them satisfied
By offering opportunities to invest that are made possible by their participation in your organization, you end up giving your employees more reasons to be happy with their work environment, and therefore more reasons to stay on. For instance, employees can be awarded a monthly sum for good performance that is invested on their behalf in high ROI policies like ULIPs. It will provide an additional incentive for them to continue to ensure they meet their targets, thereby earning their investments every month. The same can be done with year-end bonuses as well.