How Financial Planning Improves Work Performance in 2022
Employees who are under stress due to finances may not perform efficiently at the office. It results in errors at the workplace and loss of productivity which could mean dismissal and more financial worries. Financial Planning plays a vital role in helping employees save and invest better and make more money.
Financial Planning involves investment, retirement, and tax planning. Employees can pick the right investment based on their risk tolerance to reach financial goals. Moreover, retirement planning means the employee knows he will have the money post-retirement which will improve performance in the office.
Companies that focus on financial education for their employees generate loyalty toward the company. It shows the company cares and the employees reward the company through hard work.
Employers can offer flexible benefit plans to help employees save on tax. It liberates employees from financial planning, and they can focus on their work better.
In the modern world, a good employer is defined by the following:
- Financial coverage: provide life and health insurance coverage
- Encourage investments: push employees to reach financial goals
- Promote future planning: introduce various savings plans for
- Project management: drive productivity through project management tools
- Time management: teach the value of time and how to stay ahead
Financial coverage
The modern world is full of uncertainties. It calls for everyone to be financially prepared to tackle emergencies If you are the sole breadwinner, your family could face a financial crisis on your untimely demise. (Alternate Para)
This can be avoided by employers offering complimentary life insurance cover for their employees. Today, most employers provide this benefit. It is one of the most important parameters that employees look for while evaluating the benefits offered by a potential employer.
A hospital visit is a costly affair. If you or any of your dependents are in need of hospitalization, it is likely that you are going to pay a hefty bill. This is certain to eat into your savings and investments. This could easily be avoided if employers provide health insurance coverage.
The premiums are affordable as they are shared by several employees of a company. Providing financial coverage for employees would help them secure their dependents, and that leads to improved performance. Most employers provide life insurance coverage at no additional cost. However, depending on the sum assured, employees may opt for increased cover by paying a nominal additional amount premium.
On the other hand, most employers provide health insurance cover at affordable premiums, which is mandatory, and deducted directly from employees’ salaries. Employees may choose to increase the sum assured or avail riders at nominal additional premiums.
Encourage investments
It is important for everyone to stay ahead of their finances. Just saving money for your future is not enough as inflation would eat into them. You have to make suitable investments to keep inflation at bay. Employers can educate their employers about various investment options available for all risk profiles. This will help employees stay on course to achieving their goals.
Tying investments with goals would keep individuals motivated and push them to pursue their goals. Long-term goals such as buying a house require careful planning and suitable investments. This requires investing in avenues such as stocks and mutual funds. However, there are inherent risks that come with such investments. It would be helpful for employees if employers break down what such investments have in store for their employees. In simple terms, do these investments match employees' risk tolerance.
Individuals looking to accomplish short-term and medium-term goals such as buying a car or going on a vacation may consider investments such as bank fixed deposits, debt mutual funds, and post office deposits. Developing an employee-centric monthly newsletter detailing all the possible investments for various risk profiles can be beneficial for employees, and helps them stay on track of achieving their goals, which drives productivity.
Promote future planning
As per government norms, most employers are required to be registered with the Employees’ Provident Fund Organization (EPFO). This helps employees plan their retirement better. Currently, employers with more than 20 employees are mandatorily required to comply with the EPF norms. The Employee Provident Fund (EPF) is a scheme focused on providing private-sector employees with retirement benefits.
The scheme requires both an employee and employer to make contributions to the employee’s account, which is locked in until the employee retires. The employees can withdraw from their respective EPF accounts only on meeting certain conditions, which makes it suitable for long-term planning.
As per EPF norms, employees are required to contribute 12% of their basic pay plus dearness allowance (DA) every month towards their EPF account, and the employer matches this amount. However, employees can opt to make a higher contribution towards their EPF account under the provisions of the Voluntary Provision Fund (VPF). Nevertheless, the employer’s contribution would remain at 12% of the basic pay plus DA.
The interest rate offered on EPF accounts is attractive. In fact, it is typically the highest among all savings schemes offered by the Government of India. Therefore, employers may consider encouraging their employees to opt for VPF and make higher contributions towards EPF and earn a higher return on their investments.
Project management
Project management is the art of driving teams towards accomplishing goals within a defined time frame. This typically involves working on project documentation, developed at the start of the project. Typically, the constraints in most projects would be time, budget, and scope.
According to research conducted by Wrike, integrated project management has helped directors save 28 times more on the budgets allocated for their projects. In simple terms, integrated project management involves focusing on where the team’s energy, time, and resources are spent.
“Don’t let poor project management become a barrier in your success. Start using ProofHub.’’
Integrated project management gives the stakeholders a bird’s-eye view of the project’s progress rather than of individual tasks related to a project. A holistic approach to project management is likely to result in a more accurate and precise workflow. This helps the company’s management in understanding the workload of their employees, and take suitable steps that aid in improving their performance.
The following are some of the project management tools that employers may consider equipping themselves with:
1. ProofHub
ProofHub allows you to plan, arrange and deliver projects on time. It offers a variety of tools to manage projects of all sizes. One can assign tasks to people and even filter and view data depending on the importance of the project. One must use the unique tools of ProofHub to empower teams to manage their tasks independently and seamlessly move from project to project. For instance, some tools help one visualize the various project pieces and ensure a smooth workflow even if deadlines are shifted.
One can assign tasks to several team members and help them adhere to deadlines through ProofHub. Moreover, one can customize workflow across stages, so that team members are notified as the task progresses. You decide who stays in control of a specified task and monitor the job as it goes on.
ProofHub offers multiple tools in one location. It gives one total control over projects, ensuring on-time project delivery and full accountability among teams. It’s easy to use with a small learning curve. ProofHub allows one to visualize events, fix tasks, assign tasks and deadlines to team members, and set milestones in one place. Moreover, as one tracks projects in real time, setting a course correction is easy if something goes wrong.
2. Wrike
Wrike is one of the most popular project management tools in the market. It is used by over 2.3 million professionals to plan projects, track progress, collaborate with other stakeholders involved in the project, and automatically generate reports. Once can create overall visibility of the progress. Wrike’s features are fully scalable and include Kanban boards, Gantt charts, custom request boards, and customizable dashboards.
3. Smartsheet
Smartsheet is another project management platform that provides real-time project management features, automation, and collaboration tools. This tool is built upon an interface similar to spreadsheets and has enterprise-grade abilities that are currently being used by several Fortune 500 companies. Strong project management attributes enable stakeholders to use various real-time data views and move between calendar, grid, Gantt, and card views.
4. Asana
Asana is known to help stakeholders of the project showcase their work, right from their daily tasks to innovative and strategic initiatives. The use of Asana in project management has made teams confident about completing the project within the stipulated timeline, accomplishing a lot more with optimum use of resources, regardless of them being located wherever. This tool is suitable for driving digital transformation, marketing campaigns, and launching products.
5. Monday.com
If you are looking for a tool that allows you to bring teams and stakeholders together with customized solutions to eliminate communication gaps, bring everyone on the same page, and make quick progress in your projects, Monday.com is your solution. This tool provides instant and easy access to updates on progress and budget approvals. You will also be able to see where the team stands on the progress of the project in just one glance. Monday.com helps you make data-driven and well-informed decisions.
6. Zoho Project
Zoho Projects is another online project management tool that allows users to collaborate with various stakeholders and teams involved in the project, plan projects better, track progress and time-lapsed on the project, manage assets, and create reports and visualization of data in charts. The tool offers a central platform on which users can track progress, collaborate, discuss ideas, and stay informed about the important updates related to the project. The tool is scalable given the number of projects and has additional features on offer if needed.
7. LiveFlow
LiveFlow is a financial reporting tool designed to transform your spreadsheet into a scalable, real-time Financial Planning & Analysis (FP&A) platform. Primarily designed for importing QuickBooks reports into Google Sheets swiftly, LiveFlow facilitates real-time data updates and efficient financial analysis.
The platform offers features such as:
- Seamless QuickBooks Connectivity: Experience hassle-free financial management with LiveFlow’s seamless QuickBooks Online connectivity, effortlessly syncing your reports/data in flexible Google Sheets for streamlined analysis and decision-making.
- Improved Accuracy & Time Savings: LiveFlow’s automated calculations and data analysis significantly reduce the risk of errors, leading to more accurate and reliable financial forecasts. By automating various financial planning tasks, LiveFlow frees up valuable time for finance teams, allowing them to focus on strategic planning and decision-making.
- Enhanced Collaboration: LiveFlow offers collaboration features that enable teams to work together seamlessly, streamlining communication and ensuring all stakeholders are on the same page.
- Customizable Reporting: LiveFlow’s comprehensive reporting capabilities allow businesses to create and customize financial reports, providing a clear picture of their financial health and facilitating better decision-making. LiveFlow can easily adapt to a company’s growth, ensuring financial planning remains efficient and effective as the business expands.”
“Track your team’s progress with a well-defined, and result-oriented finance workflow with ProofHub.”
Time is money
In the modern world, time is more than money. You must invest your time and energy in only those things that help you be more productive and facilitate achieving your goals faster. Companies must focus on eliminating or minimizing tasks that take a lot of time but bring minimal to nil value in terms of progress. Also, it is essential to teach employees the value of time.
Employers may consider setting up webinars and sessions with renowned industry specialists for this purpose. Doing so will help employees prioritize their tasks and stay ahead of the project. This is certain to boost the overall productivity of the company as all employees would know what to do and when.
Conclusion
Financial planning is important for employees or anyone for that matter, and employers can help their employees with this in several ways, some of which are mentioned in this article. Employees figuring out their investments and tax savings would give them peace of mind and help them focus on their work better. You can further boost their productivity by introducing project management tools. These tools and platforms are essential in the modern workplace as they simplify the lives of stakeholders by providing a space to collaborate, exchange documents, and allocate budgets.
