Financial stress can impact all of us. And according to Calm, a workplace wellness consultant, financial concerns are the No. 1 stressor for employees. It can derail their focus at work as they struggle with issues involving:
- housing costs
- car payments
- child care
- medical expenses
- and more
Luckily, you have the power to help. And it starts with pay literacy. It refers to our knowledge over every component of our paychecks, like taxes, benefits, earnings and deductions.
How does pay literacy help employees?
Pay literacy gives employees an invaluable opportunity to plan ahead and avoid the concerns that compromise their well-being.
Because without it, financial issues take a devastating toll on employee well-being, morale and job satisfaction. In turn, this damages an organization’s retention, efficiency and even compliance.
By prioritizing pay literacy, you can help employees secure true understanding of their finances. Plus, showing that you genuinely care about their well-being gives them a compelling reason to stay with your organization for the long haul.
Why should businesses care about pay literacy?
Despite many employers knowing they should support their employees’ financial well-being, few feel equipped to do it. Unchecked, a lack of pay literacy could:
- derail focus, engagement and productivity
- yield more time-consuming payroll errors that HR has to retroactively fix
- increase potential noncompliance from unfollowed payroll regulations
How does an automated payroll experience boost pay literacy?
An automated payroll experience — like Paycom’s Beti — engages employees with their pay and drastically reduces the chance for costly errors. It works by automatically finding potential issues, then guiding employees to fix them before submission.
In turn, Beti lets your organization:
- simplify the process overall
- lower turnover and disengagement
- bolster compliance
- champion pay literacy and financial wellness