It’s no surprise that the global health crisis caused by the COVID-19 pandemic has drastic effects on the world’s economy. These effects on the economy are more felt in the United States and other countries with high infection cases. For most countries that have been hit hard by the pandemic, individuals will need to find newer income sources.
Most individuals that have been affected by the current economic recession are suffering from some form of financial hardship, especially those that have lost their jobs in several sectors and industries. Millions of workers from the airline industry, hotels, and manufacturing sector have lost their job as multi-billion dollar industries are in economic distress.
Government entities from the US Department of Labor has shown that the record for most unemployment claims within the country was just broken in the span of one week. In fact, there are more unemployed workers now than there were during the Great Recession and in most major natural calamities.
Although this might be the case, there have been some attempts to help alleviate many economic problems. Most lawmakers have been trying to pass bills, including an economic stimulus bill, as a means of easing the living standards and financial needs of recently furloughed workers.
While most public and private institutions are doing their part to help much of the general public “bounce back” from the pandemic, it’s still crucial that workers learn how to be financially literate with managing their monthly budgets. Even though these unemployed workers might be getting a stimulus package, that doesn’t mean that they shouldn’t spend their finances on more pressing aspects of daily life.
While we are in a state of an economic crisis, this is the best time to discuss and focus on what we can do to improve financial education and literacy.
So what are some ways of nurturing financial literacy among employees? What are some keys strategies for saving up during troubling times?
Giving Employees Options
Much of the pandemic have been stressful for millions of employees since this has affected savings accounts 401(k)s and investments. Much of the stress that has impacted both the emotional and physical well-being of employees is directly related to financial stress and the limited options caused by the pandemic.
While it is essential to educate employees on several new laws like the Families First Coronavirus Response Act and financial literacy, giving workers options for their finances can help alleviate the stress related to the current public health crisis. Several measures will provide individuals with emergency family leaves and sick leaves, depending on the situation at hand.
Most human resource departments have also been revamping and going through their policies regarding leaves to ensure that employee morale in business organizations remain high.
Another way for most employees to give themselves the financial “boost” that will help them throughout much of the pandemic comes from loans. Since monthly bills and loans will usually take a good chunk of an individual’s expenditure, considerate and hassle-free loans are a better choice in more troubling times. For those looking for better property and housing loans, you don’t have to look anywhere else to find the best mortgage rates.
Educating Employees About Finances
Another important way of helping employees reduce the amount of expenditure is by proper financial education. Many public and private institutions have been offering financial literacy programs to help employees. These programs are known for increasing workplace productivity, boosting job satisfaction, and ultimately saving up on the costs of healthcare and other monthly expenditures.
Some agencies and firms are also establishing financial programs coupled with training for human resources and automated digital solutions.
In the past few years, the rise of self-service applications, machine learning, and advanced intelligence has made it possible to educate employees at the comfort of their own homes or wherever they might be. This is especially useful during a pandemic when most individuals will be learning from home.
When it comes to larger conglomerates and organizations, credit unions, assistance programs, and personal financial supervisors effectively cut down on monthly spending.
While the economic crisis has restricted much of our options, there are still various ways of having stable finances in uncertain times. Whether it’s educating employees or giving them more options, teaching financial literacy among employees and the public can help keep morale up for companies while retaining an operational workforce.