Hartford Business Journal

www.HartfordBusiness.com • May 20, 2019 • Hartford Business Journal 25 WEALTH MANAGEMENT Financially fit employees boost company productivity By Valerie Dugan F or many people who have been deskbound all winter, spring brings a renewed focus on fitness and wellness: the sunshine, blooming flowers, and pleasant climate encourage us to get moving and trade sedentary pursuits for outdoor activities. Spring is also a perfect time to focus on financial fitness. Financial fitness contributes to our overall health and wellbeing. Being financially fit — being able to afford what you want without the stress of future financial woes — means that we are bal- ancing our earn- ings and savings, investing thought- fully, managing our debt, and poised to meet our life's goals and milestones as they occur. Being financially fit means freedom from stress. Conversely, being financially unfit could be detrimental. There are a number of things that worry Ameri- cans, from work, the current political climate, and market swings, but con- cerns about money are among the top stressors plaguing Americans. Studies have shown that over half of employees are stressed about their finances, and 48 percent of employees are distracted by their finances at work. For employers, this presents a prob- lem, as stressed and distracted work- ers lose productivity. In fact, research has shown that stress over finances causes workers to miss almost twice as many workdays per year as those not experiencing financial stress. Be- cause of worries about finances, over half of all employees, 54 percent, plan to postpone retirement. How, then, do we become more financially fit? With our physical fitness, we identify areas that might need more attention than others (our cardiovascular health, our strength, our flexibility) and work toward holistic improvement. Similarly, with our finances, we look at all the elements of our entire financial profile, such as maintaining a budget, paying down student debt, managing our credit-card debt, balanc- ing our portfolio, planning charitable giving, and saving toward retirement. Being financially literate goes hand in hand with being financially fit. For instance, we should be on top of our 401(K) benefits so that we track our savings for retirement. We should be familiar with concepts such as the cost of credit card debt versus other means of financing — perhaps there are alternative solutions that may lead to a monthly savings? A trend among more and more com- panies is to provide financial resourc- es to help individual employees set up their financial profiles — creating a budget, for example. These programs may also help the employee pool take advantage of any benefits the compa- ny offers, like refinancing solutions for student debt, a problem that takes a huge toll on saving for other financial goals, such as retirement. This type of personalized approach within the sphere of the company not only helps reduce employee stress and increase financial wellness, but for the employer it has the added result of increased productivity and perhaps a feeling of greater connectedness be- tween the employer and employees. One company, for example, offers a wellness assessment that is comprised of a series of questions that yields an overall "score." The answers an indi- vidual provides then leads to a "game plan" for improving that score. Like physical fitness, levels of im- provement are part of a journey toward wellness: from identifying the starting level; engaging specific, action-oriented behaviors; giving immediate feedback; and, of course, reinforcement. For physical fitness, that reinforce- ment comes from feeling healthier. For financial fitness, the reinforce- ment comes from a reduction of stress and an increased ability to meet each of our goals for our wealth. Valerie Dugan is a senior vice president and financial advisor with the Global Wealth Management Division of Morgan Stanley in Hartford. BIZ BOOKS Tips for creating a successful business-communication strategy By Jim Pawlak "Make Some Noise — The Unconven- tional Road to Dominance" by Ken Schmidt (Simon & Schuster, $28). Whether you're a small business or a multi-national, answers to these three "Noise Cubed" questions should drive your communica- tion strategy: 1. What are customers say- ing about your business? 2. What do you want them to say? 3. What are you going to do to make them say it? Schmidt cre- ated the three questions as his commu- nications career took him from a gas sta- tion to a hotel chain to Harley-Davidson, and eventually to consulting. Before you answer them, complete this "business identity" exercise: Think about your recent big purchases, why you chose them and where you bought them. If you're like most people, you did some online homework. You looked for reviews and testimonials, and often filtered your buying choices based upon the customers' narrative. Word- of-mouth may have influenced your decisions, so take note of what you heard, too. Customers usually humanize their comments (e.g. cool, liked, easy to use, treated like family, rude, didn't listen, etc.) when discussing the reasons for their choices. Next, go to the company web- sites/social media to see what the companies say about the prod- ucts and services you purchased. Have the compa- nies humanized their pitch, or just laid out the facts? Whenever you find a disconnect between what cus- tomers say and a company's narrative, there's a communication gap. Do the same for your firm's offerings — and those of your competitors, too, and then answer the three questions. Focus your answers on what "makes you you" in your customer's eyes and the things that differentiate you from your competitors. For small businesses, the three answers should revolve around be- ing neighborly and an eagerness to go the extra mile. Prime example: On pages 54-55, Schmidt tells the story of Huemann Water Conditioning (www. huemannwater.com) in Johnsburg, Il- linois (population 6,000). It's been selling water softeners for 55 years and thrived against large competitors. When you follow its customer-service and commu- nity-based focus, you're making noise that resonates with any customer base. "Talking to Crazy: How to Deal with the Irrational and Impossible People in Your Life" by Mark Goulston (AMACOM, $18.95). You've met the bully, the manipula- tor, the victim, the know-it-all, the backstabber, the whiner, the gossiper, etc. Dealing with these personalities can drive you crazy — unless you em- ploy Goulston's methods for dealing with them. Here are a few: 1. "Keep your own crazy at bay when you're under attack." Becoming defensive only adds fuel to their fire. They win; you lose. Pausing before you respond calms your emotions and pro- vides a moment to frame a response. By maintaining your poise, you disarm the crazy — yours and theirs. 2. "The belly roll." Don't attempt to take charge of the conversation. Instead, roll- over and let the irrational person lead the conversation. Sounds counterintuitive; it's not. "Increasing the person's power lessens his need to act out." If the person sees you as non-threatening, the attack stops and real conversation starts. 3. "Time travel." You can't change their past or yours. The future beck- ons. Simply asking "What do you want me to do or not do?" starts a conversation. As it progresses, weave your expectation for her/him into it. 4. The "Butter up" works well with know-it-alls. Identify areas where the person excels and play to them. Guide the conversation to how the person could grow those skills. By seeing you as a mentor, the person may be open to taking your advice. You need to manage the crazies in your life, or they'll manage you. Valerie Dugan Jim Pawlak Book Review

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