by Sarah McAdams
Nearly three-quarters of employees are stressed about money — and 45% say their financial worries make it harder for them to do their jobs, according to a Workplace Options survey.
Current predictions about the economy surely won’t improve matters. “The key source of people’s money stress is far deeper than where to invest or even how much money they are making, which are often where companies focus their financial assistance,” says Brenda Fuchs, president and founder of financial education firm Chief Money Motivator. “The stress often starts with a basic lack of money management education and a resulting feeling of judgment, shame or inadequacy.”
Find practical tips and ideas for HR, including improving employee retention and morale in each month’s issue of HR Insight
5 Ways to Help Anxious Employees
What can HR pros do? We asked a handful of experts; here are five things they said worked for their clients:
- Provide targeted financial education. “Printed material is largely ineffective, while employee workshops and seminars are successful,” says Ronald Wilcox, professor at Darden School of Business and former SEC economist. “All employees benefit from this type of training, but women with below-median incomes especially benefit. Select a group of employees who are opinion leaders within the organization to help with this training.”
- Keep it performance-based. “If you suspect that an employee is having financial difficulty, an appropriate question might be: ‘We’ve noticed changes in your [meeting deadlines, work quality, or other performance issue]. Is there anything we can help with?'” suggests Mary Ellen Gornick, senior vice president at Workplace Options. “The next logical step is to point the employee toward the right resource. At the end of the day, employees who are really struggling really need and want to keep their employment.”
- Provide training to boost coping skills. Companies provide a variety of training sessions, including how to cut credit card debt and how to stick to a budget. “Provide them with financial education, including templates to understand where their money is going and an understanding of the terminology used in personal finance — which often seems like alphabet soup to many and they just tune out,” Fuchs says. “It can actually be quite simple, straightforward, and freeing once employees shift their mindset, take control and get started with a plan.”
- Consider a loan program. “Some companies have successfully set up funds with stringent guidelines that provide employees with emergency loans or grants for dire financial circumstances,” Gornick says. “Helping employees through a rough patch can help create long-lasting loyalty and help retain valuable employees.” Other pros recommend including a “garnishment” type payback and required budget counseling.
- Sponsor debt consolidation. “Help employees pay off high-interest credit cards with a lower-interest loan,” suggests Kathleen Pereles, associate professor in the Department of Management at Rowan University.
Audio Conference: Keep Employees Engaged and Slash Turnover: Secrets of the Great Workplaces and 30 Ways to Engage Employees So They’ll Act Like They Own the Place
For more insight, go to www.workplaceoptions.com.