Thoughtful ways to support your employee’s financial journey

As a business leader, you know that team morale and financial peace of mind go hand in hand. But offering financial help? That’s where compassion meets complexity. While you might think the overall goal is stability, it’s actually empowerment.

Here’s a guide to supporting employees in ways that are fair, sustainable and inspiring.

What to do:

• Create a written policy outlining when and how advances are allowed.
• Define a fair limit, such as one advance per quarter or a capped dollar amount.
• Document it with a signed acknowledgment that outlines repayment (typically via payroll deduction).
  

Real-world scenario: Imagine your cashier needs $300 to fix a broken fridge. A transparent advance prevents scrambling and you’ve maintained fairness and structure.

M&T tip: Ensure smooth payroll processes with M&T Business Checking Accounts  that support seamless deductions.

Here are some best practices:

• Use a promissory note detailing principal, interest (at or above AFR), and repayment terms.
• Treat loans as a goodwill gesture, recognizing they may not always be repaid.
• Set realistic expectations, both financially and legally.
  
  

Example: A small cleaning company quietly helped an employee with a loan to cover temporary housing. The employee never repaid yet remained loyal and performed exceptionally.

M&T resource: Our Business Lines of Credit & Loan Options can help employees help themselves without drawing from reserves.

Here is how it works:

• Pool voluntary contributions or company funds into a hardship fund.
• Offer quick, low- or no-interest grants for urgent needs, like medical emergencies or car repairs.
• Allow anonymous application to preserve dignity.
  
  

Employees who know help is available can often report lower stress and greater loyalty.

Support employee well-being with the M&T @ Work program , which offers financial education workshops right at your workplace.

Here are some ways you can get started:

• Host lunch-and-learn sessions on budgeting, debt management, and saving.
• Partner with financial advisors or nonprofits for expert-led guidance.
• Promote tools that keep employees engaged and informed long after the session ends.

Real-world example: A tech firm saw a 25% drop in turnover and saved $300,000 in recruitment costs after just one year of financial education programming.

Not sure where to start and need ideas? M&T's Business Education Center offers workshops to empower your team’s financial confidence.

Here are some ideas to try:

• Give mini “you’re doing great” bonuses during tough times.
• Launch peer-to-peer recognition with financial rewards for team achievements.
• Match employee contributions to savings goals, like emergency funds or education accounts.
  
  

Why it works: In one workplace, “mini-bonuses” connected employees emotionally and financially, without breaking the bank.

M&T tools: Enable seamless bonus delivery with Business Credit Cards  or Merchant Services.

Make certain it is secure and supportive:

• Partner with providers that offer paycheck-linked loans at affordable rates.
• Deduct repayments automatically, easing the burden on employees.
• Ensure transparency around amounts and timelines.
  
  

When offered the right tools, employees can avoid predatory lenders and regain stability.

You can explore Business Lines of Credit to empower employees without risking their financial future.

Empathy thrives in environments that protect dignity. Whether it’s a paycheck advance or hardship request, ensure the process is:

• Confidential: No shame, just support.
• Transparent: Clear guidelines reduce bias and confusion.
• Inclusive: Everyone knows the support exists, even if they never use it.

Launch or enhance your relief programs using M&T Business Checking and Payroll Tools.

Bring financial wellness directly to your team with M&T @ Work.

Take advantage of curated Business Education Center resources to build financial literacy.