Building financially discipline employees is the key to success of the organization
Cost cutting and limiting unnecessary expenses is the current subject in the busines world and we hear from all corners in the market. There is no doubt this initiative is essential to survive and manure the business during this turbulent environment. At the same time, it is also prudent to implement strategies to retain quality employees for the sustainability of the organization.
While organizations are focusing on cost containment initiatives, it is important to invest time and money on educating and training the employees in managing their personal financials. This not only will help the organization to reach cost containment objectives but also will support the organization to develop happy and financially healthy employees during this pandemic.
Many leading universities have conducted researches to understand the link between money and happiness and these researches are conducted very often to understand the changes in human behavior and believes towards money.
Based on the latest research conducted by Harvard University (published in September 2020), even though money cannot buy happiness, it is evident that money has direct impact on the level of happiness in each individual. Based on the research, people are much happier and motivated to see their saving balances growing than the pay cheque credited to their account. On the other hand, people who have depleting bank balances are found depressed and demotivated. It is very clear that more than the level of income it is the amount of money that is maintained in the account what motivates and triggers happiness among individuals.
Pay increase gives temporary motivation, and it is a common phenomenon in our culture of complaining about salary in two to three months after pay raise. Which is a clear indication that increase in pay has nothing to do with motivation and happiness. What really motivating is the amount of money people save and see them growing. Which doesn’t only make them happy but also make them feel more secure.
While providing a healthy pay to employees, it is high time that the organization invest on educating the employees on the importance of managing their income and building a financially healthy life.
At this juncture building engaging employees is key for business success as they will always add value to the organization and its financial growth. And the most important way to increase such engagement is by creating peace in their life through educating financial discipline.
Sometimes we witness organizations themselves put employees in trouble by allowing banks to sell loans and credit card. And due to limited knowledge, most of them fall in debt-trap and lose peace and happiness, which make them lose focus on the job and reduces engagement, which results the organization losing quality employees.
This is the right time for the organizations to focus on training employees on managing their income and building a healthy financial life, instead of investing time on traditional trainings.
By Arshad Jamaldeen
Author of “Road to Billionaire”