With the nation in an economic downturn, finances are forcing some individuals and families to take desperate measures to lessen their financial strains. In addition to walking away from their homes, they may be cashing out or borrowing against their 401(k)s or selectively picking which bills get paid.
Unfortunately, financial problems at home can wreak havoc at work. Productivity decreases, and time off to deal with financial issues increases.
When personal financial problems start getting in the way of work, it is in employers' best interest to act fast. But some employers overlook key resources, such as their employee assistance program. EAPs have tools and resources available to help individuals deal with the emotional consequences of financial struggles, while allowing employees to maintain their confidentiality.
Assessing the situation
In the last year, EAP programs have begun to see an increase in the volume of calls related to stress, depression and other work-life challenges. After talking through issues with an EAP professional, many of these individuals specify that financial challenges are a contributing factor to their underlying problems.
According to the Wall Street Journal, economic challenges are closely tied to your company's location. In areas posting an increase in unemployment, home foreclosures or other economic challenges, the chances of such struggles affecting employees are higher.
Employees who are financially strapped are likely exhibiting some warning signs, such as increases in 401(k) withdrawals and loans, an uptick in salary advances or unusual changes in benefit enrollment patterns. These may be the warning signs that employees are facing financial hardships. Employers also will want to watch for other issues, such as decreased productivity, increased mistakes and attendance issues as potential signals.
Also look for signs of employee stress. If employees are facing financial hardships, they may have difficulties leaving the stress of the situation at home. Creditors might be calling. Employees may be using work time to take care of personal matters, or they might be distracted by how they'll be able to pay next month's bills. Their stress may lead to an increase in health issues, such as migraines, ulcers, muscle tension, anxiety and depression.
Due to confidentiality issues, managers can't ask their employees about their personal lives. However, EAP professionals can provide tools to help managers be sensitive to confidentiality guidelines, yet observant and aware of specific problems related to performance, attendance and safety.
Being observant and sensitive to employees' needs and concerns is the first step in helping determine whether financial challenges are causing productivity decreases or other issues. From there, HR pros and EAP resources can partner to help your employees through difficult times.
Communication
Quite often, employees are surprised that EAPs offer financial counseling. When they're in trouble financially, they may not consider EAP services because they're worried the service will cost them added money they don't have.
Communication is a key component in helping employees correctly utilize the EAP resources and benefits that are available to them. Periodically remind employees and managers about the services your company has available. A simple e-mail reminder, newsletter or other form of communication can go a long way in getting the word out. Also, check to see what written communications the EAP has to utilize.
Consider giving managers a cheat sheet with resources available to help them and their teams. Through different communication channels and repeated messaging, employers likely will see increased EAP utilization.
Partnership strategy
When it comes to developing a strategy for helping employees through economic crises, a partnership between company management and your EAP is key. Because there are so many factors that can come into play in these situations, no single department or person should be responsible for developing a comprehensive plan.
EAP professionals can help HR/benefits execs brainstorm creative solutions or connect you with reputable nonprofit organizations that can provide educational resources and assistance. These programs can be cost-effective and easy to administer.
Beyond partnering with your EAP, consider other alternatives to proactively help employees pinch pennies and pay down debt. This could include starting a green campaign to encourage saving money while helping the environment both at work and at home.
You also could help employees with high gas prices by starting an online carpool message board, giving discounts for a local transit program or offering flextime if it works within your company's environment.
By giving employees the tools and resources to be free of financial stresses at home, they will become more focused and productive at work. In doing this, they're more likely to think clearly and contribute to the success of your company.
Nancee Johnson-Meester is a senior EAP specialist at Mutual of Omaha, an Omaha, Neb.-based firm that offers an EAP, disability insurance, life insurance, worksite marketing options, retirement plan solutions and dental coverage.
