Written by: Danny Kofke, Motivational Mentor
Financial stress is one of the leading causes of high employee turnover. When workers feel financially strained, they are less able to focus on their jobs and less likely to feel loyalty towards their employer. Fortunately, the right financial mentor can help educate employees to ensure that they get the most of their money and take advantage of employer-sponsored initiatives. This, in turn, can help boost employee satisfaction and improve retention rates within your organization.
The Cost of High Employee Turnover
Companies that experience high employee turnover often try to find ways to keep workers
satisfied, but find that it is an uphill battle. If a business fails to invest in its employees and
address their specific needs, particularly financial ones, it will almost certainly see high turnover
rates. And the cost of high turnover takes away from the bottom line — in more ways than one.
First and foremost, when employees only stay at your company for a short time, it greatly
increases the hours and labor required to train new hires. This turns into a vicious cycle
because the funds needed to continuously train and rehire cannot be allocated to programs or
initiatives to decrease financial stress, improve job satisfaction, and ultimately reduce turnover.
Consequently, it is very difficult for businesses with extremely high turnover to find room in the
budget to start making the necessary changes.
Additionally, high employee turnover typically has a negative impact on your overall brand. If
potential hires talk with current and past employees or simply read online reviews, they could
discover that workers do not last very long at your company. This will make it harder to hire the
talent you need to run your business.
Financial Mentorship Increases Retention Rates
The United States is currently in the middle of the “great resignation.” With so many people
quitting their jobs, healthcare and other benefits are just not enough to entice new applicants.
As an employer, if you show that you see people as more than just workers, it can help your
company hold onto employees for the long term. This is because, on top of the decent
compensation and benefits packages, employees want to feel valued. That little bit of extra
value can help draw in more talent and keep employees retained.
Surveys show that the vast majority of employees are more willing to stay with an employer that
provides benefits like employer-sponsored education programs and direct benefits like childcare
support. [1] At Mentoro, we have found that a combination of incentives to increase employee
engagement in financial initiatives, educational programs, and one-on-one consultations with a
finance mentor can greatly reduce financial stress and increase the desire to stay with a
company. For example, after implementing a similarly designed program with the Harris County
School District in Hamilton, Georgia, metrics showed an overall improvement in employee
financial wellness between 2020 and 2021. Moreover, the number of employees who reported
feeling distracted by their finances at work decreased by more than 10%. [2]
How to Find a Financial Mentor For Your Staff
Financial wellness means something different to different people. Financial advisors, stock
market mentors, and more general financial mentors charge fees, which means that most
middle-income earners simply cannot afford the same financial wellness benefits as higher-
income earners. For this reason, organization-wide financial mentorship can provide education,
hope, and real-world benefits to everyone at your organization, regardless of their position or
salary.
At Mentoro, we give advice based on what is best for the client’s finances. People want
unbiased guidance and actionable advice. Consequently, finding the right financial mentor for
your staff is all about finding the kind of services that appeal directly to your employees’
requirements. Therefore, you must ensure your employees are getting what they actually want
and need. Some employees have different needs than others, so make sure that your program
actually helps all employees, not just a particular segment of your workforce.
Financial wellness used to be solely based on investment, which is why many companies turn to
a stock investing mentor or value investing mentor. But the reality is that financial wellness can
be so much more than that. When analyzing financial wellness, a financial mentor should
consider many different elements, from estate planning to student debt. This is why Mentoro
offers the perfect solution for both employers and employees.
Mentoro offers customizable solutions involving both human and technological resources. We
aim to reduce financial stress, increase knowledge of financial benefits, and increase employee
retention, engagement, and satisfaction. By providing a financial mentor to assist employees
and other unique educational resources, Mentoro gives businesses the ability to retain
employees and build a stronger, more productive workplace.
If you are currently in the market for a financial mentor or you want to learn more about
improving employee retention for your business, be sure to contact the experts at Mentoro today!
