The average employee, like the average Joe is broke and debt-ridden that’s why the draw of a larger salary will always be tempted.
Many employees start becoming discontent if they feel that they can’t live the lives that they want with the compensation that you give out. It’s a truth anyway that, even with a sizable salary, one needs to be financially smart to maximize the income benefits.
Many employees think that larger salaries are equivalent to greener pastures. If you’re worried about attrition then consider helping out your employees by helping them realize that they can be financially stable even with the compensation that you offer.
You can do this by holding personal finance planning workshops and seminars sponsored by your company. These should orient your staff on the basics of financial planning. Help them shore up their emergency funds and teach them how to make their money grow.
You can also orient them on the real value of the compensation package that you give out. If you provide for the benefits, match 401(k) contributions, then make sure that your employees are able to understand the real value of these.
The better they are financially, the less they will be entertaining the thought of leaving.
I’m the average employee and I’ve worked for some above average employers, but i’ve never heard of employers helping their workers with financial planning. Great idea!