Happy productive employees are the asset of any organization. One of the major responsibilities of any HR manager is to ensure the wellbeing of the staff to boost workspace productivity. Personal financial crisis is one of the crucial factors that plummets employee productivity big time. According to this article, 83% of HR managers believe personal financial issues cast a huge blow on employee productivity. Financial struggle or insecurity abets mental stress and decreases employees’ ability to focus at workplace. The problem also triggers tardiness and absenteeism which eventually hampers the overall efficiency and production of an office.
Put simply, personal financial crisis of employees is a matter of huge concern for any HR manager. However, there are some steps that HR managers can take to help employees overcome financial struggles and get more productive at workplace.
Inspire sign up for EPA
Financial crisis is often a result of poor fiscal management. Worse, many of your employees will even have reservations about speaking out about their financial troubles. If you get a hint that any of your employees is in a similar situation, consider enrolling him for an EAP session. Employee Assistance Program refers to a confidential counseling service for employees sponsored by their employers. Such programs extend counseling for various problems bothering the employees and financial counseling is a major part of any EPA session.
These financial counseling sessions will educate the employees about the different aspects of proper financial management. These includes tips on creating an effective budget, advice on managing credit card payments on time, how to bypass bankruptcy and so on. The counseling sessions will be extended to both the employee and his family members.
Advice on debt management
As per the latest UK debt stats, over 270 people are reported to be bankrupt or insolvent everyday. Loan is almost mandatory for every family today to lead a quality life. But the catch is, only a handful of them are informed about proper debt management. So, if your employee is into a financial crisis due to mounting debt, your office can help with informed debt management education and tips.
Debt management with an iva could be one of the most viable solutions here. IVA or Individual Voluntary Agreements is a program that works to consolidate pending unsecured debts in one affordable and convenient monthly payment. If one signs up for IVA, all the interest & charges on his debt will be eliminated to lessen the burden. He will just need to pay out a nominal proportion of the debt over the course of 5 years. After 5 years, the residual debt will be declared void & he will be declared debt free.
Constitute emergency fund provisions
At times sudden unfortunate turns in life put one into severe financial crunch. It could be a medical emergency or an unavoidable exorbitant repair bill. When a person is not prepared for a staggering bill, the stress becomes doublefold and eventually hampers his productivity. This is where emergency fund provisions from office will be a lifesaver. Many smart organizations today are extending emergency loans to employees through pay to provide them the immediate support.
Timely paychecks
Make sure your employees get paychecks on time. They have certain financial commitments to meet on certain dates of the month. If they can’t pay the bills on time due to delayed paycheck, many of the bills will impose costly late penalties. And that will abet their financial burden further. So, be careful of proper financial management at workplace to ensure your employees get their dues on time.
These steps will not only help to ease the financial crisis but will also prove that the office cares for its employees. Any employee will be ready to give his 100% for a workspace that actually cares about his concerns and that eventually piques the productivity of the organization.
