Retaining Talent Once You've Won It

Companies invest heavily in attracting the right talent to meet their business objectives. Your organization is likely no different. Part of this effort involves positioning your company as an appealing employer. It's not just about buying advertising space, but about demonstrating the value you offer - what employees experience within the company and how they reflect this on social media and other public platforms. The package that persuades a candidate to join goes beyond the "hard benefits" like salary, holiday allowances, a company laptop, or phone. For most employees today, these tangible benefits are considered a baseline requirement. If you don't tick these boxes, you won't even be considered. Therefore, it's the "soft benefits" that enhance your company’s attractiveness. What kind of team environment do you offer? What opportunities for learning and growth? What unique experiences make working for your company stand out?

In short, you must offer a great place to work. However, many employers assume that, once this foundation is set, the rest is up to the employee - make your own career, seize opportunities, educate yourself, and be a team player.

While this approach works for many, life can sometimes take an unexpected turn.

When Personal Circumstances Change

From time to time, personal misfortune strikes. A major event can lead to unexpected expenses or sudden changes in income. Things can spiral out of control for reasons beyond one's control. Not everyone reacts the same way when faced with these challenges. Research shows that financial stress can negatively impact cognitive function - essentially, people can find themselves making poorer decisions when under financial pressure.

This, in turn, can lead to professional mistakes. While some companies can afford an error here or there, few can endure repeated mistakes. The result might be the reassignment of an employee or, ultimately, the termination of employment. This can lead to a loss of human capital that might have been avoided had timely action been taken.

The Employer's Role: A Win-Win Opportunity

When an employee faces the threat of losing their job, financial planning can offer a tailored understanding of their financial future, highlight potential ways to manage changes in income, and suggest actionable steps. We have seen a growing number of employers offering this service. Interestingly, some employees who were made redundant have continued to speak highly of their former employers because of the support they received.

Some companies proactively offer financial planning services to boost employees' financial awareness, their ability to take action, and their peace of mind. This helps employees remain focused and engaged in their roles. In fact, several collective labor agreements include employer-funded financial planning sessions every five years.

Making financial planning available to employees can provide substantial value to the company. The level of support varies widely. At one end of the spectrum, some companies offer employer-funded workshops to increase financial awareness, with employees funding any further planning themselves. At the other, employers fully fund financial plans, particularly as part of restructuring processes that may result in job losses. Many companies find a middle ground between these extremes.

When the Company Changes

Despite the best efforts of a company to deliver an optimal environment, sometimes the business cannot reap the full rewards. Companies encounter both opportunities and challenges that may require changes in strategy, processes, or team structures. Even in ideal conditions, an employee might lose their job if there is no opportunity for redeployment within the company.

Losing a job is one of the most significant emotional and psychological challenges a person can face. Studies show that the initial emotional impact is akin to grieving, quickly followed by financial uncertainty. This financial anxiety is often worsened by the complexity of social security systems, taxation, and industry-specific arrangements.

Addressing the Soft Factors to Tackle Hard Realities

Employee well-being - happiness, if you will - is a crucial part of an employer's reputation. It takes significant investment and effort to build and maintain, but it can be lost very quickly. Helping employees feel financially secure can foster greater commitment and performance, protecting the investment you've made in attracting and retaining them.

So, have you considered offering financial planning support to your employees?