It is not only businesses that are suffering during these tough economic times. Employees who are having problems dealing with their own debt are bringing their financial problems into the workplace and this is having an impact on their productivity.
"Most employers and employee assistance program providers have been caught off guard and are unprepared to handle the growing financial problems affecting their employees," says Deborah Price, president of the Money Coaching Institute, Petaluma, Calif.
While EAPs offer mental health resources to employees, most of the counselors will readily admit they are not trained or educated about money issues. At the same time, few financial advisors or debt counselors are suited to handle people in serious emotional crisis. "When it comes to identifying and changing money patterns and behaviors," said Ms. Price, "there is less help or even real understanding of these issues."
She offers five proactive measures that companies can undertake in these difficult financial times:
- Be aware that employee' personal financial issues are detrimental to their personal and professional well-being and can pose a risk to a company's productivity and profitability.
- Understand that health insurance providers, EAPs and financial advisors do not have the specific expertise and skills to sufficiently help financially stressed and traumatized employees.
- Build a culture that provides and supports financial education programs. Consider, for instance, programs offered by the Garrett Financial Education Alliance.
- Provide new training programs and incentives for EAP providers to create a more integrative and holistic model that more adequately addresses the needs of employees in financial crisis.
- Provide resources to employees that can help them identify and change their money patterns, beliefs and behaviors.
"People seldom forget those who have helped them in their time of need. Those who respond to their employees today will undoubtedly be rewarded with loyalty, gratitude and improved productivity that will pay dividends for years to come," added Ms. Price.More information about Ms. Price and her organization is available at
