2019 - Page 10 of 11 - Best Money Moves

Hiring Employees with Criminal Backgrounds: What You Need to Know

by LizStevens | Feb 6, 2019 | Blog

Hiring employees with criminal backgrounds: what you need to know. More than 650,000 people are released from prison each year and companies are committing to changing recruiting practices to include opportunities for those with criminal backgrounds.

The Society for Human Resource Management (SHRM) recently launched Getting Talent Back to Work, a national pledge for business leaders to commit to giving opportunities to qualified people with criminal backgrounds. It follows January’s passing of the First Step Act, which improves rehabilitation and re-entry opportunities for the more than 650,000 people released from prison each year.

“This is a group we, as business leaders, cannot afford to overlook as 1 in 3 adults in the United States currently has a criminal background,” said Johnny C. Taylor Jr., CEO of SHRM. “Not only is it the right thing to do—to give a deserving person a second chance—but it is becoming imperative as businesses continue to experience recruiting difficulty at an alarming rate.”

More than 80 percent of hiring managers indicated workers with a criminal background are a high-quality hire equal to or even more effective than those without a criminal history, according to research by SHRM and the Charles Koch Institute. More than 70 percent of those same hiring managers found extreme value hiring those with a criminal background because of diminished costs associated with hiring from within that population, as well as mitigating risk to effective operations.

Hiring managers are able to see beyond the organizational benefits of hiring people with a criminal background and point out larger societal benefits, like the opportunity to improve the community around them and the intrinsic value of giving people second chances at employment.

Associations and companies representing more than 60 percent of the U.S. workforce have already joined SHRM in taking the Getting Talent Back to Work pledge. Competition for talent is tight and employers can’t afford to overlook a third of the population because they have criminal backgrounds. A strong recruiting process will ensure only the most qualified candidates from a truly diverse pool, regardless of background, are considered for open positions.

“Our nation just took a major first step toward helping people who want an opportunity to transform their lives—now we’re pledging to take the next step,” said Mark Holden, senior vice president and general counsel of Koch Industries. “Koch is incredibly proud to offer second chances to qualified people with a criminal record and now, thanks to SHRM, more businesses will have the tools needed to hire these individuals. By taking this next step, we can create stronger families, a more robust workforce, and safer communities for all.”

Is Rehiring a Former Employee a Good Idea?

by LizStevens | Jan 23, 2019 | Blog

Is Rehiring a Former Employee a Good Idea? They’re familiar with organizational operations, company culture and need less training to get up to speed, but only half of employees would consider returning to a former employer.

Most senior managers are open to rehiring boomerang employees—staff members who previously left the company on good terms, according to recent research from Accountemps.

“Companies need to leave no stone unturned in their search for talent,” said Michael Steinitz, executive director of Accountempts. “Boomerang employees are an attractive option because the firm is already familiar with how they’ll perform and fit in with the organizational culture. Returning workers also require less training to get up to speed and may have acquired valuable new skills while they were gone.”

Former employees, however, were not quite as eager for a reunion—just over half of them are likely to apply for a position at a previous company.

More than 20 percent of employees would not return to a former employer because of dissatisfaction with management. Issues with management arise when there is frequent miscommunication, limited flexibility with scheduling, or when workloads are unbalanced. Dissatisfaction with management lessens job satisfaction and can lead to employee burnout.

A poor fit with the organizational culture was the reason over 15 percent of employees would not apply for a position at a previous company. Most employees agree that company culture is important. If companies can get employees invested in the work environment and company mission they’ll be more likely to return or recommend quality candidates.

Nearly 15 percent of employees wouldn’t return to a prior employer because of unfulfilling job duties. It’s impossible to make every position feel interesting and important, but if employers can connect the work to the larger company mission, provide great benefits and maintain a positive company culture, unfulfilling work is less likely to affect job satisfaction.

Just over 10 percent of employees refuse to return to a former employer because of bridges burned by the company. There’s no way to unburn a bridge, but employers can expect that management treat everyone with respect, even when an employee has made the decision to part ways.

“Rehiring a former staff member may seem like a simple process, but it’s essential to understand why the person originally left and whether the issue has been resolved,” advised Steinitz. “The employee will not stay long if past problems keep resurfacing.”

More than 60 percent of HR professionals called the sourcing of talent “very or extremely challenging” in a recent XpertHR survey. Rehiring former employees doesn’t exactly widen the candidate pool, but it does add in a few individuals who have already demonstrated their value. It might be worthwhile to start leaving the door open when talented, reliable employees move on.

How Do Employees Pay for Unexpected Expenses?

by LizStevens | Jan 21, 2019 | Blog

How do employees pay for unexpected expenses? Less than half use their savings and the rest turn to credit cards, personal loans, or borrow from friends and family, increasing debt and worsening financial stress.

More than a third of U.S. employees faced an unexpected expense, like a car repair or emergency room visit, that cost $5,000 or more last year, according to a recent survey by Bankrate.

Americans are already losing sleep and spending time at work worrying about their finances (costing employers up to $2,000 annually per employee lost in productivity). If only 40 percent of workers have enough savings to cover an unexpected $1,000 expense, even less have enough to cover a $5,000 expense.

Credit Cards and Personal Loans

Without savings to turn to, 15 percent of employees finance emergency expenses with credit cards they pay off over time. It seems like a solution that’s easy enough, but interest on unpaid balances adds up quickly. In 2018, Americans paid banks $104 billion in credit card interest and fees, according to Magnify Money by LendingTree.

The 6 percent of workers who cover an unexpected expense by taking out a personal loan run the same risk of snowballing into deeper debt if they’re unable to pay off the balance before interest hits.

Budgeting and Spending

Another 14 percent of Americans reduce spending on other things to cover an emergency expense. It might prove to be harder than they anticipated. Marcus by Goldman Sachs found almost 60 percent of Americans found tracking and budgeting expenses to be more stressful than opening a new savings account or trying a new workout.

Friends and Family

Borrowing from family or friends is how 13 percent of Americans deal with an unexpected expense. Most Americans are struggling with their own financial stress, but more than 80 percent are willing to make a major financial sacrifice for adult children, according to research from Merrill Lynch. Each year, parents spend twice as much supporting their children than they do making contributions to their own retirement ($500 billion spent on adult children, $250 billion in contributions to retirement accounts).

Unsure How to Cover Unexpected Expenses

An alarming 10 percent of Americans would either figure out “something else” or don’t know what they would do if they had to deal with an unexpected expense. Almost 80 percent of employees live paycheck to paycheck. More than half of the 3 in 4 workers that say they are in debt today think they will always be in debt.

Unexpected expenses add to the high level of financial stress most employees already experience. It’s overwhelmingly clear that employees need employer support to build emergency savings and prepare for life events like homeownership, raising a family and retirement. Employers who offer financial wellness programs and encourage employees to engage with them can help employees get back on track, so an unexpected expense doesn’t sink them further into debt.

Financial Wellness Month: How to Make the Most of It

by LizStevens | Jan 16, 2019 | Blog

Financial Wellness Month: How to Make the Most of It. Employers can help reduce financial stress that hinders productivity by providing tools that help employees pay down debt and save for retirement.

January is National Financial Wellness Month! It’s perfect timing because Americans are facing their New Year’s resolutions and preparing for tax season.

Here are 5 areas of financial wellness where employees need support most:

Helping Save More for Retirement

Employees experience debilitating financial stress when it comes to retirement and they want employers to provide tools and support that ensure they’ll have enough money saved to last through retirement.

Preparing for Future Healthcare Expenses

Long-term healthcare, like nursing homes or assisted living, is expensive and although 70 percent of Americans will need it, more than 60 percent have nothing saved.

Tackling Student Loan Debt

Student loan debt surpasses $1.5 trillion and it is affecting your workforce. Student loan debt is affecting all age groups, it’s keeping younger employees from major life milestones and it is making your employees sick.

Spending Smarter

More than half of Americans spend more than they earn and 70 percent consider their level of debt to be problematic. Almost 50 percent have credit card debt, more than 40 percent have a mortgage or a car loan and over 30 percent have student loan debt. Employees need help spending smarter so they can pay down their debt and start saving.

Bracing for Recession

There’s a 23 percent chance of a recession in the next 12 months, and employees are not ready for it. The Federal Reserve Bank’s latest report found 40 percent of U.S. households cannot cover a $400 emergency expense, leaving them unprepared and vulnerable to financial crisis in a recession.

How Employers Can Help

An effective financial wellness program, like Best Money Moves, can help employees budget spending better, pay down debt, save for emergencies and plan for retirement. Best Money Moves combines technology, information, smart tools and live money coaches to help employees measure their level of financial stress in 15 categories, and then sends relevant information and tools to help them reduce that stress.

Employees use the program’s point-based rewards system, which assigns point values to every action possible on the site from setting up income and expenses with the budgeting tool to reading articles and measuring stress. Each month Best Money Moves hosts a global contest with a cash prize for the user who has earned the most points during the month. This ongoing engagement strategy keeps usage at 25 to 51 percent.

What sets Best Money Moves apart? We aren’t trying to sell your employees anything and we aren’t a “robo-investment” platform because we believe that employees need unbiased information they can trust.

Learn more about how Best Money Moves can make a difference for your employees by contacting info@bestmoneymoves.com.

Will Increasing Financial Literacy Reduce Overall Financial Stress?

First Look at the Future of Financial Wellness

What Does Financial Wellness Look Like for Women?

Financial Wellness Research Warrants Worry

Financial Support Limits Retirement Readiness for Parents

What Tops Financial Stress for Employees

Boost Employee Engagement and Loyalty with Financial Wellness

Money and Health are Tied Together. Here’s What We Know

Zombie Employees: Who Are They and What Do You Need to Know?

by LizStevens | Jan 16, 2019 | Blog

Zombie Employees: who are they and what do you need to know? This is the reason why employees are distracted, taking more time off and losing sleep.

Financial stress keeps 40 percent of Americans up at night, according to a new survey from Marcus by Goldman Sachs. This echoes research from Fidelity Investments, which found those with financial stress don’t get enough sleep and are more likely to be frequently stressed-out or anxious.

But employees aren’t just losing sleep. Financial stress can lead to poor health, lower productivity and higher absenteeism. The result is a disengaged workforce, a.k.a., zombie employees.

Zombie Employees, Financial Stress and Health

Nearly 90 percent of those surveyed by Marcus by Goldman Sachs agree financial well-being has an impact on their overall health. Willis Tower Watson found employees with high levels of financial stress are twice as likely to have poor health as opposed to those without financial stress. Employees struggling with finances are absent twice as often as those who are financially stable. Financial stress is so high, more than 25 percent of Americans skip necessary medical care because they’re unable to afford the cost, according to the 2017 Federal Report on Economic Well-Being.

Financial Stress at Work

Employees bring financial stress with them to work. Bank of America found more than 50 percent of employees who feel stressed report that it interferes with their ability to focus and be productive at work. More than 40 percent of employees spend 3 or more hours at work dealing with personal finance matters each week. John Hancock found 70 percent of financially stressed employees worry about personal finances at work, costing employers up to $2,000 annually per employee in lost productivity.

The good news is, a recent survey by Bankrate found almost 90 percent of Americans have a financial goal they’re hoping to accomplish in 2019, like paying down debt, budgeting spending better and saving more for retirement. The catch? They’ll need help to achieve their financial goals. Marcus by Goldman Sachs found almost 60 percent of Americans found tracking and budgeting expenses to be more stressful than activities like opening a new savings account or trying a new workout.

Financial Wellness Programs

Employers can help zombie employees overcome financial stress and revive their work lives. A report by Ernst & Young found more than 40 percent of employees who are engaged with their financial wellness program are likely to remain productive in the office. The right financial wellness program will help employees reduce financial stress and its detrimental effects so they can bring focused productivity back to work.