Financial, health or family-related crises can affect employees at work
Sam Barrett www.employeebenefits.co.ukFinancial, health or family-related crises can affect employees at work, and employers need to have support mechanisms in place, says Sam Barrett. The impact of the credit crunch on businesses has been well documented, but the problems it raises for employers could go much further than their bottom line. Many employees could also be affected, including those in well-paid roles.
According to published figures, some advice centers in affluent areas have seen increases of up to 500% in the number of people seeking help. Many employees may be struggling to manage their household budgets, when faced with higher prices for essentials such as food, utilities and gasoline, plus higher credit interest rates and increased mortgage or rent payments. This could be a problem even for those in a secure job and earning a good salary who have become used to a high standard of living, perhaps funded by credit cards.
Such problems may not seem like something for employers to deal with. But all too often, personal issues in employees’ home lives, such as financial problems, or a close relative with a serious illness, can distract them from their work, inevitably impacting on their productivity and performance — and that’s if they are able to come in to work at all.
Financial education
In some cases, employees may be able to solve their own financial problems by tightening their belts and re-evaluating their monthly expenditure. But this is often easier said than done, and they may need financial education or advice to point them in the right direction.
Whatever problems employees are battling, their concerns are likely to be a source of worry and stress, which can affect their physical health as well as their performance at work. In extreme cases, individuals may also be moved to consider suicide if they cannot see any way out of their situation and do not have anywhere to go for help.
Prevention
Although it is not possible to prevent some crises, such as a fire, flood or relationship breakdown, there are some benefits employers can provide to help employees avoid some potentially traumatic situations. A prime example of this is health, especially because the first signs of a serious condition, such as heart disease or cancer, can be lurking long before someone develops any symptoms.
These ask a series of questions about an employee’s health and lifestyle, then produce a personalized report highlighting areas of concern and steps the employee can take to prevent possible future problems. Some personal financial or debt problems can be prevented by providing financial education or advice in the workplace. This can be arranged by linking up with a firm of independent financial advisers to provide one-to-one or group sessions for employees, or by using one of the online financial training programs.