How the Family Farm model helps create a culture of financial well-being

The pandemic cost nearly 12 million jobs, says the Economic Policy Institute, and shockingly, about 80% of those affected were low-wage earners. These are the folks scrambling to make ends meet, those that were loyal and historically lured into staying at their job with promises of being part of a "work family." But after the pandemic, that argument doesn't really hold water. What if your parents came home one day and said, "Pack your things, get out, and good luck." Let's face it: you don't kick your family to the curb.  

Trust was broken, and post-pandemic employee benefits are in a bit of a pickle. Massive job cuts shattered the comforting "workplace is family" belief. With artificial intelligence (AI) and automation on the rise, more job losses are on the horizon — and it's scary. Some companies still use the "sports team" idea to defend profit-first decisions. But their employees aren't buying it, fearing they're just seen as disposable.

During this shaky time, companies need to rethink their cultures and how they treat employees, but employees have a responsibility to help rebuild, too. The 'Family Farm' metaphor offers a fresh look at building the best organizations over the next decade, where everyone's well-being matters, and everyone works together to create a positive environment. Many companies say they're like a "family" or a "team," but often it just isn't true. The 'Family Farm' model might be an old idea, but it could be the perfect fit for today's workplaces.

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I happened to grow up on a family farm in Coastal Virginia. One year, we decided to grow corn for the local farmer's market. Come spring, after the last frost, Dad got the old tractor humming and we got to work planting seeds for our summer yield. Being the youngest, I was tasked with gently drizzling mineral oil on each corn's silk, while my brothers battled the weeds. When harvest season rolled around, our teamwork paid off. We kept some corn for the winter and sold the rest. With the money we made, Dad showed us how to build a little outbuilding, our very own "Playhouse."

So, what can modern companies learn from a family farm? This simple idea can be a powerful way to think about a company's holistic financial health. Like the fertile soil in our fields, financial health is vital for a company's growth and culture. It goes beyond just money, covering things like income, education, housing, transport, food access, and social support.

Here are five compelling ways companies could use a 'Family Farm' approach. 

Mutual Responsibility and Dependability
Just like on a family farm, everyone has a job to do. In the office, this means everyone's contribution counts towards financial well-being. It's not a one-person gig. Employers can help by providing resources, learning opportunities, and tools to guide employees on their financial journey. This not only boosts team spirit, but also creates a healthier, happier workforce.

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Investment for the Future
Think of financial security as a seed for good health. Employers can water this seed by investing in their employees' futures through good pay, solid retirement plans, and excellent health coverage. Financial education programs also help employees manage their money, reducing stress and improving overall health.

Flexibility and Adaptability
Farmers change their approach depending on the weather or market conditions, and companies should do the same with their employees' financial needs. Benefit packages should balance upfront costs with protection against unexpected big expenses. With job security at risk due to advancements in AI and automation, companies can also offer skills training and career development to ensure long-term financial stability.

Ownership and Involvement
Giving employees a stake in their financial well-being can boost their engagement and proactive management of finances. This can be done through profit sharing, stock ownership, or comprehensive financial programs. To address different life events impacting financial stability, these programs should provide financial coaching, educational resources, encouragement for positive behaviors and affordable solutions for unexpected expenses.

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Strong Community Spirit
Last but not least, a close-knit community ensures no one misses out on financial support. Open talks about financial well-being can help erase the stigma around money problems. In fact, a 2021 PwC survey found that over half of employees needing financial help were too embarrassed to ask. Peer support and mentoring can foster shared learning and mutual aid, making the workplace a 'dinner table' network that helps protect everyone's financial health.

It's high time for companies to ditch the old "family" or "team" models and adopt the 'Family Farm' approach. Why should you act?  Think about this: Research published by Public Health Nutrition in 2021 shows that 20% of low-income households had food insecurity. Put another way, one in 10 of your employees will go hungry this year. 

Financial well-being benefits can greatly reduce these insecurities and hugely impact both people and the businesses they work for. If companies make a focus on financial well-being part of their culture, they can boost team engagement, productivity, and health security. As work and personal life blend more and more, companies play a key role in supporting their employees' financial health, a cornerstone of top-performing organizations in today's world.

Who'd have thought the humble family farm could guide us toward a strong future for successful companies in the 21st century? Turning this age-old wisdom into modern business practice would surely make Mom and Dad proud.