According to the results of the Social Pulse survey carried out by the National Administrative Department of Statistics (Dane), 82% of Colombian households do not have the possibility of establishing a savings plan. In this reality, it is important that employees have notions about the proper use of money. Even more so, when the country is going through a fairly dynamic economic situation, mainly affected by inflation rates, the depreciation of the peso, the possible reforms that the Government is processing, among other factors.

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And it is for this purpose that today, more than ever, workers require advice that can offer them accurate guidance and elements to establish a financial plan aligned with their needs and moments in life. And it is that according to the study of Financial Well-being carried out by Mercer, 84% of employees trust their companies as the second source of advice after their familyTherefore, it is important that organizations consider actions and initiatives with which they can guarantee greater stability and financial health in their collaborators.

To begin with, it is important to define financial well-being, which refers to a situation in which an individual or a family has adequate control over their finances and has the necessary means to meet their current and future needs.. This includes having a steady income, saving for the unexpected, investing in your future including old age, and paying off debt responsibly.

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“Achieving and maintaining financial well-being requires planning and discipline. This provides a sense of security and financial freedom. But this is not only the responsibility of people, but also of organizations that must promote the good use of the personal finances of their employees, which in the end have a direct impact on the results of a company”affirms Suzelle Morris Leader of Financial Well-being for Mercer in Andina, Central America and the Caribbean.

Why talk about financial well-being in organizations?

First of all, a financially concerned employee is very likely to work for money, to get out of the nearest financial problems and without bringing innovation and efficiency to work. You can even measure the effectiveness of low financial levels with high risk of fraud. On the other hand, an employee financially is more likely to be productive and focused at work, because they are also freed from the tension and stress that personal financial problems produce.. On the other hand, a strong financial management policy can help improve employee retention, as workers appreciate a company that cares about their financial well-being.

In addition to this, organizations that offer programs and tools to improve the financial education and savings of their employees can improve this culture and increase the loyalty and commitment of employees to the company, since it is not only about net compensation but about give them an emotional salary that impacts their capacity for commitment and increasingly becomes a factor valued by employees.

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“In summary, taking care of the personal finances of employees is a long-term investment for the company, since it can improve productivity, retain employees and improve the general financial culture. Therefore, it is an initiative worth considering for any organization” complete Morris.

For the expert, it is important that companies implement all kinds of alternatives to encourage good financial habits in employees. Elements that will translate into other variables that go beyond productivity. Here are some of these:

– Employee retention: If a company provides financial advice and education to its employees, employees are more likely to feel valued and committed to the company, which directly reduces employee turnover.

– Assertive compensation: If companies only use compensation benchmarks to compare themselves with the market, without taking into account what their employees dream, yearn for or appreciate, they can make the big mistake of deciding how the industry moves and not how their staff is motivated. When we use company resources correctly, including in the form of compensation and benefits, the financial results will be favored sooner or later.

– Sustainable commitment: Companies have a social responsibility to help their employees have a healthy financial future, which contributes to the general well-being of society.

– Difficulties to avoid costs: Inflation can make it more difficult for companies to predict and plan for their long-term costs, and keeping a check on a company’s most important asset, its people, can greatly decrease the complexity of making effective financial decisions at this juncture. current.

Finally, it is important that companies and employees adapt and take measures to mitigate these negative effects, take charge of their finances and set limits so that in the future they are not affected by mismanagement of their personal finances.

Today’s employee is looking for a balance between competitive salaries and benefits that improve their quality of life. This is reflected in studies carried out in Latin America where it can be observed that the benefits of health, free time, flexibility are preferred within the labor industry.