How Labor Employees Find Value In 401k's, Direct Deposit, and Simple Savings Plans

My Business On Purpose

Well, we sure do field a lot of questions from a lot of frustrated owners over our time. In fact, this coming week we'll be in Dallas speaking at a Build Expo, and I highly anticipate these questions will come up around this issue of employee engagement. How do I make employees feel valued? How do I make them feel engaged with what we're trying to do? And so we're going to talk about that.

Hey, before we dive in, you need to check out the Dickey and Donnie Show on the BOP podcast. It's two of our coaches, Sean and Brandon. They're amazing coaches and I am so grateful they've taken time. It is a whimsical look at a lot of the frustrations that business owners deal with, but done in a super fun way—and I think you'll enjoy it. So come to this podcast, look for the episodes entitled Dickey and Donnie, and you'll get it. Once you get on there, you'll get it.

And stay tuned to the end of this podcast. I'll give you a little tool and a resource I think will be helpful for you.

I want to tell you a true story of how you can see engagement within employees and also value—how you can actually show them value. When Coastal Shores Landscaping took a closer look at their labor crews’ lives, they uncovered a significant financial issue that many of them were dealing with. See, these 20 to 25 crew members that they had at the time—have actually grown since then—many were cashing their paychecks at the local grocery store every single Friday. What seemed like a convenient option was actually costing these employees quite dearly.

The company discovered that check cashing fees were adding up to a staggering amount—equivalent to about one week's salary, sometimes a little bit more per year, per employee. Of course, the problem doesn't stop there. Any one of those individual problems has recurring benefits or consequences. Having cash in hand on a weekend often led to impulsive spending and left little for savings or essential family needs.

So they recognized the issue, and Coastal Shores made a strategic decision to implement a mandatory direct deposit policy for all employees starting that following October once they figured this out. This actually happened a few years ago, but this move was designed to address several key problems and provide multiple benefits to their employees.

First, it gave employees the dignity of having their own bank accounts. The company brought a banker to their office to help set up those accounts for free for everyone. This simple step of just opening up an account on site opened up a world of financial services and opportunities that many had never experienced before.

Second, it eliminated the temptation of having immediate cash on hand. We all know what happens with cash in our pockets. With money safely deposited in their accounts, employees would need to make a conscious decision to withdraw funds—hypothetically reducing impulsive spending.

Third, the company introduced a Christmas savings program. They set up a designated account where employees could save a small amount each month for holiday gifts. This helped prevent the need for last-minute borrowing or credit card debt during a festive season—so you could go through the season and not have guilt on the backside of it.

Coastal Shores didn’t stop there. They expanded their financial wellness program to include 401k accounts, allowing employees to start saving for their future. Among their field team—their labor crews—there is currently a 98% participation rate. This comprehensive approach to financial literacy became an integral part of the training program.

Coastal Shores embodies the principle that life and business necessarily intersect. By investing in their employees’ overall well-being, they have created a workforce that's not only more skilled in their jobs but also more financially stable and satisfied in their personal lives. This serves as an excellent example of how companies can positively impact their employees’ lives beyond the workplace—creating a win-win situation for the business and its members.

I know sometimes that can overwhelm you to think about—“Well, how do we do 401k plans or how do we set up these other ancillary programs for our employees to be able to thrive?” Hop on a call with one of our coaches. We've got dedicated time as our coach team to set time with you. If you're a business owner with three or more employees doing a million or more in revenue, then go to businessonpurpose.com/ask—that’s businessonpurpose.com/ask—and one of our coaches would be delighted to hop on with you for about 15–20 minutes. They’ll answer any questions you have, and if you want to know how to work with us, potentially they can show you that as well. Just ask them.

Alright, so go to businessonpurpose.com/ask, and you can get clarity on how to start engaging with your employees.

To check the health of your business, visit mybusinessonpurpose.com/healthy today!

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