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5 Surprising Symptoms of Financial Stress (And 5 Helpful Solutions) Read it here.

Know the Warning Signs of Employee Burnout

Know the Warning Signs of Employee Burnout

by | Jul 25, 2018 | Blog

There’s a fine line between employee engagement and burnout. Know the warning signs of employee burnout for higher retention and productivity.

Employee engagement drives productivity and retention, but it’s not all good news. Research from Yale University revealed 50 percent of moderately to highly engaged employees are burnt out. They’re passionate about their work and show high skills acquisition, but they’re also the employees most at risk for turnover.

Dr. Jochen Menges, a co-author of the study, claims his research can help employers. “By shedding some light on some of the factors in both engagement and burnout, the study can help organisations identify workers who are motivated but also at risk of burning out and leaving.” A shortfall of Menges and his colleagues’ research is its inability to pinpoint when engagement stops being productive and starts exhausting valuable employees.

The challenge is to find the fine line between engagement and burnout. It’s different for everyone. One way to tell is to watch for signs like frustration and anxiety.

The study measured engagement, burnout, demands, resources and how they interact and influence each other in over 1,000 U.S. employees. Employees that were ‘optimally’ engaged reported high resources and low to moderate demands. They had support from their supervisors through rewards and received recognition without having to struggle with cumbersome bureaucracy, demands for concentration, or heavy workloads. On the other hand, 64 percent of employees experiencing burnout reported high demands and high resources. Finding the right balance between resources and demands might be the key to productive engagement.  

Look for common symptoms like exhaustion, frustration, anxiety, and inability to keep up with daily tasks. Monitor workloads to find out when it’s time to dial demands back and expand resources. Wellness programs can ease stress and help employees manage work-life balance, but if demands are too high employees will still burnout.

Research from Business Point Innovation Network and Pollfish found that 60 percent of working mothers and fathers experience burnout. Employees with children might be more likely than others to experience burnout, but there isn’t enough research on demographics to confirm which employees are most at risk.

Until there’s more research, it’s best for employers to assume any employee could be at risk for burnout.

Open Offices Are Trendy, But Are They Effective?

Open Offices Are Trendy, But Are They Effective?

by | Jul 17, 2018 | Blog

In the Best Money Moves Roundup, we run down the latest news on open offices, paid leave, and keeping employees engaged during summer.

Supposedly, open offices improve communication and collaboration.  However, a recent study published by The Royal Society indicates that the open office may be doing the exact opposite.

According to the study, face-to-face communication takes a 70 percent dive in open offices. Instead of fostering collective energy the study found that “open architecture appeared to trigger a natural human response to withdraw from officemates and interact instead over email and IM.”

The research also found that productivity declined after eliminating spatial boundaries. Considering 70 percent of Americans work in open offices, this is an issue companies are going to have to tackle in order to recoup possible productivity losses.

See more on effects of open offices and what you can do about it here. 

What we’re reading: 

What paid leave program works best for you? Paid absence policies are valuable to employers and employees, but they require a balance to make sure it’s beneficial for both sides. Ask yourself these 3 questions.

Help avoid the summertime slump. Summertime weather and activities mean there are a million things your employees would rather be doing than work. Use these tips to keep employees happy during summer.

“Ghosting” at work. The term “ghosting” that Millennials traditionally apply to relationships is also relevant to work. Learn more about new hires ghosting and the challenges facing HR.

Navigate the many options for employee well-being. There are endless employee benefits and with low unemployment you want to make sure you select the right one’s for your staff. Here are 4 tips to help build an effective wellness program.

Get ahead of termination. Problems that eventually result in termination can be prevented. Given the costs of turnover, it’s advantageous to try. See if any of these 11 strategies to prevent problems resulting in termination can help.

Amazon’s unconventional “Pivot” program. Underperforming employees can have a courtroom-style video conference with a jury of peers to make evaluations more fair and communicative. So why are some employees are protesting it?

Custom medical plans. Each employee has different healthcare needs and some new companies are offering the ability to customize their medical plans. How this trend is developing and its implications.

Have something to add? Email info@bestmoneymoves.com.

The Truth is Open Offices Aren’t Really Collaborative

The Truth is Open Offices Aren’t Really Collaborative

by | Jul 17, 2018 | Blog

Open offices should encourage collaboration between employees. But the truth is they aren’t really collaborative after all.

Supposedly, having an open workspace improves communication and collaboration. However, a recent study published by The Royal Society indicates that the open office may be doing the exact opposite.

According to the study, face-to-face communication takes a 70 percent dive in open offices. Instead of fostering collective energy the study found the opposite. “Open architecture appeared to trigger a natural human response to withdraw from officemates and interact instead over email and IM.”

Do You Work in an Open Workplace?

The research also found that productivity declined after eliminating spatial boundaries. Considering 70 percent of Americans work in open offices, this is an issue companies are going to have to tackle in order to recoup possible productivity losses.

Lower Job Satisfaction Reported in Open Offices

A study published in SAGE Journals found that employees are irritated most by the sound of conversations, ringing phones and machines in the office. Noises like these are unavoidable in most open offices. They hinder productivity and are frustrating for employees who can’t tune out unless they isolate themselves further by listening to headphones.

Another study published in the Scandinavian Journal of Work, Environment & Health found that employees who work in open offices take an average of 62 percent more sick days versus other layouts. This is because viruses and bacteria spread more easily. But it could also be because the lack of privacy in open offices is stressful and stress makes sickness more likely.

Designing Around the Open Office Challenge

Although there are a number of challenges with open offices, they can be done right. Harvard Business Review determined what makes certain floorplans successful. They found that employees are more likely to respond positively to an open office layout when an employer conveys the vision for the space beforehand, is enthusiastic about the transition and encourages employees to adapt the space to their needs. The report notes, “When leaders encouraged adaptation and teams felt comfortable claiming the space as their own, they reported more place identity and generally felt better about the objective features of the space, like privacy, noise, and lighting.”

Work With Your Employees To Improve Open Offices

Communicate changes in office layouts, be enthusiastic about the space and allow flexibility so employees can make their office space more comfortable. While open floorplans have drawbacks, it’s still possible to create an environment tailored to the needs of your employees. Take back productivity, job satisfaction, and reduce absenteeism by making your office space work.

Read more about office environments:

Top 10 Workplace Etiquette Rules for Communication

Your Millennial Employees Aren’t Buying Homes Now. Here’s Why:

Your Millennial Employees Aren’t Buying Homes Now. Here’s Why:

by | Jul 16, 2018 | Blog

A recent study from the Urban Institute shows that many Millennials are forgoing home buying due to student debt and high rental costs.

The data is in: With a different socioeconomic makeup and different living preferences than generational predecessors, your Millennial employees are less likely to be homeowners than Gen Xers or baby boomers.

A recent report from the Urban Institute found that Millennial employees are more likely than their counterparts in older generations to delay marriage and childbearing, life milestones that often lead to homeownership.  

And while Millennials as a whole are owning less homes, black and less educated Americans are falling even further behind. Minority households have homeownership rates close to 15 percentage points lower than white households. Additionally, there is a gap of about 10 percentage points in the homeownership rate for households with high school or less education versus those with some college education or more.

High rental costs and increasing student debt haven’t helped Millennials who are looking to save money for a down payment. In a recent federal survey, 53 percent of renters said a barrier to homeownership they faced was  “I can’t afford a down payment to buy a home,” and 33 percent said “I can’t qualify for a mortgage to buy a home.”

The report also noted that Millennials prefer to live in high-cost cities with inelastic housing supplies. These cities — like the East Coast’s Boston and New York City and the West Coast’s San Francisco and Los Angeles — tend to have greater urban amenities and more job opportunities, making them more desirable for Millennials to live in.

To address these issues, the Urban Institute offered four key policy recommendations:

  • Increase homeowner awareness and financial knowledge by providing online training as well as education in high school and college
  • Utilize financial technology for a more efficient mortgage process
  • Include rental and utility payment history data in Millennials’ creditworthiness evaluation
  • Adapt land-use and zoning regulations to increase the housing stock

Whatever the next steps forward, it’s clear something has to change to enable a greater number of Millennial employees to set down more permanent roots and purchase homes.

5 Industries That Desperately Need Financial Wellness Solutions

5 Industries That Desperately Need Financial Wellness Solutions

by | Jul 12, 2018 | Blog

With the pension era over and Social Security projected to be tapped out within two decades, employers in every industry are stepping up efforts to help ease financial stress on employees by providing desperately needed financial wellness solutions.

This is smart: The majority of Americans report that money is a “somewhat or very significant” source of stress, with parents and younger adults reporting high levels of financial stress, according to the American Psychological Association.

The issue is bleeding into the workplace as nearly half of employees report that financial challenges cause the most significant stress in their lives, according to the 2017 Employee Financial Wellness Survey. “Stressed employees are found to be less productive, take more time off to deal with financial matters, are more likely to leave the company for higher compensation, and are more likely to cite health issues caused by financial stress,” the survey reported. This shows “a direct correlation between an employee’s financial well-being and a company’s bottom line.”

That’s why savvy companies are adding and boosting financial wellness benefits as a win-win. Nearly 60 percent of employers are “very likely” to and another third are “moderately likely” to focus on the financial well-being of workers beyond retirement decisions, according to Aon’s 2017 Hot Topics in Retirement and Financial Well-being report. While the subject has been on the radar for several years, more than half of employers say the importance has increased in the last two years.

Here are some fields where adding financial well-being programs can be particularly effective:

  1. Healthcare. These professionals may be struggling with large amounts of debt while juggling nontraditional hours. In some cases, student loan bills can equal or top a mortgage.
  2. Nonprofits. This sector has a bottom line focused on change, so employees may be paid less, grapple with modest resources and be asked to juggle tasks beyond their job description. Meanwhile, many nonprofits constantly seek new and additional funding, which can make the future unstable.
  3. Startups. Building a startup is hot, but keeping them running can be stressful. What’s more, employees may need to figure out stock options and, in some cases, how to properly manage a sudden windfall.
  4. Retail. These workers largely deal with wages lower than $10 an hour and sporadic schedules. With average rental rates nationwide topping $1,200 a month, paying the rent requires significant work.
  5. Manufacturing. This sector’s employers may be stressed about looming automation and the increased need for college degrees. Factories also continue to close nationwide, creating additional concerns.

Dawn Wotapka is a financial writer.

What is Financial Toxicity?

What is Financial Toxicity?

by | Jul 10, 2018 | Blog

In the Best Money Moves Roundup, we run down the latest news on student loan and retirement assistance, the benefits of biking and artificial intelligence in the workplace.

If you ever wondered if there was a direct link between financial stress and health outcomes, look no further. According to research compiled by Managed Care, Americans are skipping medications that could improve their quality of life because they can’t afford them.  The term financial toxicity was coined by Amy Abernathy, MD, in an essay for the journal Oncology.  “Out-of-pocket expenses related to treatment,” she wrote, “ are akin to physical toxicity, in that costs can diminish quality of life and impede delivery of the highest-quality care.”

The truth is many employees need help navigating healthcare benefits to lower out of pocket expenses and avoid , “financial toxicity.”

What can you do about it?

What We’re Reading

Employer tackles student loan debt and retirement. When employees contribute 2% of their salary to paying down student loans Abbott Laboratories will pay the equivalent of 5% of an employee’s salary to to their 401(k). Learn more about their Freedom 2 Save program.

Happier, healthier employees. An initiative in France incentivising employees to bike to work led to a 15 percent reduction in sick leave, lower transportation expenses, less stress and higher job satisfaction. See how it worked.

Would you trust orders from a robot? More than 90 percent of workers responding to a recent study would, but progress is slow when it comes to companies adopting and preparing for artificial intelligence in the workplace. Read the full results breakdown.

Open offices lower direct communication. Recent studies found that email and instant messaging conversations increase significantly, productivity declined, and face-to-face interaction decreased when offices transitioned to an open landscape. Why this happens and how it relates to insect behavior.

Help Millennials secure their financial wellness. Nearly 70 percent of millennials are stressed about their finances. Help them get on track and back to work. Share this quick tipsheet with your employees.

A simple gesture to support employee’s mental health. With recent rises in mental illness and suicide employers cannot avoid addressing mental illness any longer. A memo like this is a good start.

On-demand health insurance. A new startup offers employees a core set of health care benefits and the option to add coverage for specific procedures. Is this the future of insurance benefits administration?

Have something to add? Email info@bestmoneymoves.com.