Your Employees’ Financial Problems Are Your Problems

Income taxes are due in one week, which means that many of us are thinking about money. In fact, a recent survey by McGraw-Hill Federal Credit Union says that 36 percent of Americans spend at least two hours a day worrying about their personal finances. And while many of us are experts at multitasking, if your employees are focused on their financial problems, they are less focused on your business.

The Society For Human Resource Management (SHRM) agrees. They said, in a 2012 survey of HR managers, that 83 percent believed that their employees’ financial problems had an impact on their work. This includes employees who struggle to focus on work (47 percent) and contributes to overall stress (46 percent). Twenty-six percent of respondents said their employees’ financial problems impact productivity.

To keep reading, click here: Your Employees’ Financial Problems Are Your Problems

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12 thoughts on “Your Employees’ Financial Problems Are Your Problems

  1. While I agree that many of the things you mentioned are good ideas, indeed, even common sense, sometimes people simply contribute to their own financial (and other!) problems. We, as employers, then have to deal with the fall-out. Whether that’s processing several, or serial, garnishments, or spending large amounts of time telling creditors they may not contact the employer at work (of course, if employees would not list their work number as their personal number, that would help), etc. We can’t solve everyone’s problems, as much as we might like to.

    1. Most people are the cause of their own financial problems. No disagreement there. These are just a few things that businesses can do to help.

    2. I’m not sure I agree. Look at the robo-signing scandal, where people that paid their mortgage on time (and in some cases owned their home outright) were foreclosed on. These people had nothing to do with their financial problems. Even getting a mortgage at a “good” band is insufficient, as mortgages are bought and sold all the time. Or how about people with relatives that are in default? Even though the worker isn’t responsible for another’s debt, that doesn’t stop unscrupulous debt agencies from harassing the innocent one (and in some cases placing liens on someone’s property.). All of these things take time to sort out, even if the worker was doing all the right things.
      Your willingness to jump to conclusions so quickly is a little scary.

  2. Suggestion 2 (“be predictable with paychecks”) is very good advice. A friend of mine is paid twice a month. Recently, because her firm’s payroll company is having trouble with their direct deposits, they issued checks to everyone. Unfortunately, where we live banks were closed for the Easter holiday on Friday. Because of this, she couldn’t buy groceries over the weekend because an automatic debit from her account came due on Friday and she would have been overdrawn. So I agree, little things like this can be very important to people with tight budgets living paycheck to paycheck.

  3. Not faulting you; But, I think it is a sign of the times when you have to advise that paychecks be “on time.”

    Well, duh.

    But, it is sad how many employers thesedays think otherwise. The same is true for expenses.

    I can’t be late to work; why do some employers think they can pay or reimburse late?

    1. That’s an EXCELLENT question. What’s really scary is that not only is it stupid and unethical to be late with payroll, it happens to be illegal.

      I don’t think most employers think it’s ok. They just don’t think.

  4. Most people are the cause of their own financial problems. The times I see issues is when an employee comes to me asking for a raise because they just bought a new truck and now realize that the 1st payment is due and they can’t make it with their current paycheque. I have helped a couple of people ‘return’ their item to get their money back! Fortunately, most of the banks here now require a letter from the employer BEFORE securing a loan to someone. It saves alot of hardship in the end.

    1. but being consistent with their pay (which should happen anyway), being fair & paying them well will help them out financially. If they know what they make and can count on their paycheques, it saves them (hopefully) from going overboard with their spending.

  5. “…but being consistent with their pay (which should happen anyway), being fair & paying them well will help them out financially. If they know what they make and can count on their paycheques”

    Dream on, Tanya – I’m looking for work and see more and more jobs posted as part -time with below $8.00/hr wages (if they even post a salary -more and more have none posted) with no set schedule.

    So, right off the bat, I do not know what I will be earning or how consistent it will be. My last landlord really appreciated that – many months of me being unable to tell him when I would have the rent.

    EMPLOYERS – Do you ever consider that this type of low-wage, uncertain schedule employee policy is detrimental to your employees? It makes it hard to concentrate on my work when I am literally wondering whether I am going to lose car insurance, or not eat, or be unable to even get to work if the car fails – and knowing that starting each workweek, I will not make enough to cover expenses.

    A McDonald’s corporate spokesman, in responding to the recent strike in NYC, defended McDoanld’s by saying (in part) that employees – and I quote – “had ACCESS to flexible schedules”. Nice touch – “access” . Yes, and they also have “access” to malnutrition, poverty, inability to pay bills, etc. due to the cheap wages of McDonalds and many other fast food and retail companies who are making large profits at the same time they squeeze their employees.

  6. McGraw-Hill Federal Credit Union says that 36 percent of Americans spend at least two hours a day worrying about their personal finances. And while many of us are experts at multitasking, if your employees are focused on their financial problems, they are less focused on your business.
    Thanks

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