The financial stress due to an increase in mortgage defaults, late payments on credit cards, decreasing value of personal savings and retirement plans is overwhelming employees and is ultimately impacting the workplace and potentially draining productivity and increasing emotional stress on the job.
Stephanie Armour, USA TODAY, writes
Major employee-assistance counselors serving Fortune 500 companies are reporting a surge in calls from employees worried about mortgages and finances.
"Our calls in general for mortgage-related issues are up over three times compared to last year," says Richard Chaifetz, CEO of ComPsych. "(Employees) become preoccupied with financial issues at work. You see absenteeism, lack of performance and turnover as people look for jobs that may pay more."
"There is a connection between emotions and finances," Jonathan Hefner, manager of legal and financial counseling services for Ceridian says. "Employees are calling about the mortgage crisis and financial squeeze. They're very anxious. We're hearing a lot more concern about foreclosure. It can have a real significant (impact) at work."
Nearly three out of five employees say they're worse off financially this year, according to an August survey by ComPsych. Just 16% said they are better off, with more savings and less debt.
When your employees are stressed out about their finances or family life;
- They are less motivated
- Less productive
- And often not happy at work
These stresses can cause employees to moonlight to pick up extra money, feel anxiety, depression and fear about their financial future. Often absenteeism increases and productivity problems affect the bottom line.
Providing the Education and Help they need to get back on track is key to a companies growth and productivity and long-term sustainability. Providing these resources while employees are already at work is key.
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