Ensuring that your employees are building great credit doesn’t necessarily seem like it’s your business’s responsibility. While it is a nice thought, as a business owner, you must prioritize the financial needs of your company first.
However, investing in your employees’ financial wellness can lead to greater overall success for your business. The state of your employees’ financial wellbeing is often tied to productivity, work attendance, and even your capability for talent retainment. This is why financial wellness programs are growing increasingly common as a part of a business’s benefit package for new hires.
When designing your financial wellness programs for greater employee attraction and retainment, it is crucial to include resources around building great credit.
Why is Building Excellent Credit Important to Financial Wellness?
Having poor credit can affect every financial aspect of an employee’s life, from their ability to get affordable loans, receive low payment interest rates, and even pay for a car or a home. This can be devastating to an employee who would normally be able to pay for these important milestones but cannot showcase their trustworthiness through a good credit score. As a result, without a quality home or transportation, getting to work may become a roll of the dice depending on last-minute financial issues.
Lowering the barriers to building great credit can improve the financial wellbeing of your employees and transform their productivity levels at work. Overall, the tools and knowledge for building or rebuilding credit will save your employees more money than they could receive from a loan or even a raise at work. This financial freedom and increased savings gained from having good credit will enable them to be less burned out as well, giving them the time to take well-deserved vacation days so that they may come back to your business with full energy restored.
How Can You Include Building Excellent Credit in Your Program?
You may now be convinced that you need tools, courses, and workshops for building credit included in your financial wellness program. But how do you go about aggregating these resources?
For starters, a relatively inexpensive or even free option that you can utilize is open-source educational toolkits from government entities or nonprofit organizations that specialize in financial education. Oftentimes, employees who have poor credit scores need supplementary knowledge to learn how to rebuild their credit properly in a short period of time. Through educational resources, your employees will also be able to walk away with an understanding of how to maintain a healthy credit score after this restoration.
However, that is just one step towards empowering your employees to build great credit for themselves. Your financial wellness program should also include customized credit services to ensure that you attract talent from a competitive labor market. These services can include credit building strategy creation based upon an employee’s existing credit and their long-term goals.
Sometimes including resources for building credit require innovative practices. Creating a public-private partnership to provide your employees with a credit-based course is not unheard of among competitive businesses. If this sounds like it may involve too much time investment, simply consider your business’s benefits provider. Do they offer any programs that align with your employees’ credit strategy needs?
As a final note, financial wellness often stems a single credit score.
Even if you fairly compensate your employees well above the market average for their positions, your employees still may suffer from poor credit management and credit card debt. By giving them the tools and education they need to build or rebuild a great credit, your financial wellness program can have a real impact on the success of your employees—and that of your business.