Have you ever stopped to think about how your executive staff members are doing with their finances? Or wondered about the emotional state of your employees? Or been curious about the financial well-being of the community in which you do business?
The emotional health and financial well-being of your stakeholders are closely linked to your business and its well-being.
So, what does that mean for you and your business?
Financial Stress Reduces Productivity
Before COVID-19, 85% of the population reported that they suffer from financial stress. With hours slashed, the stock market uncertain, and jobs cut, that stress has only grown. Unfortunately, stress often drives employees to call in sick. Plus, even when they are at work, stress can reduce productivity by 30%. Furthermore, chronic stress, including financial stress, can result in health problems that increase absenteeism and cost the company money.
Ultimately, stressed-out employees cost the company money.
Emotional Intelligence or EQ Relates Directly to Finances
Our finances have always been closely linked to our emotions. Now, in an uncertain world, people are even more likely to make emotional decisions based on their fears and worries about the future. We buy things that we don’t need. We stock up on toilet paper for fear of a shortage. We make purchases to impress others, instead of focusing on true needs.
Emotionally intelligent people know that a desire to purchase something may be based on emotions. So, perhaps they wait 30 days to make the purchase. They can also manage feelings of stress through healthy coping mechanisms. Emotional intelligence also helps people adapt to changing situations and plan for the future.
EQ Can Help You Help Your Stakeholders
You don’t want your stockholders, employees, and executive staff to make all of their decisions based on their emotions. Instead, it would be great if they could plan for the future using their IQ and EQ. This will result in less stress and more stable conditions for your business.
But, how can you get them to lower their stress levels, improve their emotional intelligence, and achieve financial well-being?
You have to set the example and provide opportunities for learning. For example, be patient and understanding with your employees when they are stressed. Show empathy when your staff are going through a rough time. Try to be as flexible as possible.
In addition, show that emotional intelligence and health are important to your company. Offer stress-management training sessions and prioritize mental health through activities at work such as yoga or meditation. Provide family financial planning workshops so that people can reduce financial stress.
In addition, make sure your business reflects these values in what you ask for from your staff and the loyalty you hope to receive from stockholders. Give bonuses and incentives for a job well done. If you don’t have a budget for bonuses, consider offering time off. These incentives can reduce stress while also motivating performance. You can also survey employee families to learn more about the needs and interests of your staff base.
Connect emotionally with your stockholders and clients by donating to their communities. Stay in close touch with the shareholders, owners, and board of directors with frequent updates about the financial affairs of the company. Think of yourself like Governor Cuomo, giving regular news to build trust and gain cooperation.
It’s a stressful world. However, it’s still possible to eliminate the negative energy of stress and fear by replacing them with healthy coping strategies and sound planning.
How will you improve the emotional health and intelligence of your stakeholders?
Elaine King offers workshops and coaching about EQ and how it affects your finances! Get in touch with her to organize your virtual session today.