Stress in the workplace is on the rise, and the pressure being placed on employees from the troubled economy is generating an emotional roller coaster that impacts focus and productivity. Everyone is feeling the added pressure as companies are making the difficult decisions to reduce salaries and their workforce in order to adjust to a contracting economy, while employees are facing unprecedented personnel economic crisis with less capital to meet their financial needs. The result is an inability to cope with the stress and depression that in turn further detracts from the employee’s ability to efficiently handle their workload.


Statistically, the Greatest Personnel Economic Crisis comes from Homeownership Issues

Underlying the stress in the workplace is the personnel economic crisis individuals face as they watch the single greatest investment they have ever made decrease in value by an average of 30% to 50% since 2005 (realestateabc.com) Bloomberg reports that U.S. home prices fell 6.8% in April, 2009 from a year earlier as rising unemployment and record foreclosures kept buyers out of the market (6/23/09). Further, U.S. foreclosure filings, which are forecast to hit a record 1.8 million in the first half of this year, gives great insights into the rising number of Americans falling behind on their mortgages (RealtyTrac Inc.).

The dilemma is that these homeowners are trapped unable to refinance because of their new negative equity position and unwilling to leave their home due to the very real fear that they will not be able to acquire another residence for their family. While no one is exactly sure of the extent of this negative equity reality, realistic estimates suggest that 30% to 40% of the homes in the country are or soon will be worth less than is owed on the property. Moreover, the economy has created a sad reality, whereby even the most prudent homebuyer who placed a 20% down payment and taken a conservative 30-year fixed mortgages is now in the unenviable position of owing more on their home than the property is worth. This new American reality is tangible, troubling, and paralyzing as is demonstrated by the fact that 80%-85% of American families facing foreclosure never respond, make an appearance, or reach out to the lender during the process. (“Foreclosure advice: Don't ignore notice home could be saved,” The Daily Record, 6/22/09)


External Stress Transitions into the Workplace and Impacts the Bottom-Line

It is a well recognized reality that the vast majority of people cannot simply turn off the stresses and pressures of daily life as they shift between their alternative realities of home and work. Accordingly, just as your employees bring their work stress home, they also bring their home stresses to work. And, with a new foreclosure filing happening every 13 seconds in the U.S., the stress weighing down on your employees is heavy ---- and getting heavier.

Workplace Options reports that 71% of employees say they are stressed by financial concerns, with 45% admitting this stress negatively impacts their work. Financially stressed employees have higher rates of absenteeism and presenteeism, tend to have more accidents at work, and require more medical services. While the exact effect of your employees’ financial worries on productivity is difficult to measure, it’s not surprising that, according to AXA Group’s Productivity Pressure 2008, 77% of HR professionals believe employees would be more productive if they were less concerned about financial issues.


This present housing and concurrent liquidity crises are unique in that the combined force is consuming, yet alienating to the average American. The reason for this perplexing caldron of competing emotions is that no one truly understands the extent of the financial turmoil and when or if there is an end in sight. This uncertainty and fear dominate the psyche, adding anxiety and depression to the stress that’s already plaguing individuals.


What can be done to Rectify this Situation?

The most effective ways to help minimize the stress your employees are facing can be summed up in two words: education and trust. Employees need to know what options are available for them to help them avoid possible foreclosure ---- and ---- they need to regain the trust they have lost in the system.

Many companies offer employee assistance programs that provide financial and/or legal guidance. However, financial planners and lawyers typically steer homeowners in the direction of loan modification. The problem is that 90% of all bank, or lender, initiated “modifications” fall right back into default or the looming actions of a foreclosure. (RealtyTrac) Studies show that the vast majority of homeowners that have been victimized by the foreclosure process did not seek the adequate resources to assist them in possibly saving their home.

The more valuable solution is to enable your employees to connect with loss mitigation counselors so they can learn about the most prudent options available to them. The goal of loss mitigation is simple: to save your employees’ homes. Loss mitigation counselors offer effective, decisive and constructive counseling services for homeowners and financial institutions alike that employ the measures of prevention, intervention, and stabilization. After all, many of your employees may be facing hardship because of a temporary financial setback. By providing case management services and counseling, loss mitigation counselors are able to assist them in creating a plan that allows them to remain in their home.

Moreover, the service is that of a confidential, impartial expert who can research, analyze, and reassure the individual that they are not alone in their personnel financial crisis. While clearly loss mitigation experts work to solve the financial crisis hand, they also work to help the employee on an individual level. The one-on-one consultative approach focuses on an individual’s internal conflicts and works to rebuild their trust and faith they lost as their financial concerns began to mount. By working one-on-one with your employees throughout the entire process, loss mitigation counselors effectively lift the anxiety, fear, and depression off the shoulders of your employees and help them return to full productivity.

It’s important to note that individuals do not have to be in foreclosure in order to take advantage of the loss mitigation process. If homeowners take the initiative, they can easily end the possibility of foreclosure or financial distress by communicating their needs prior to the resetting of their interest rate.


Summary

Instead of becoming just another housing-related statistic, enabling your employees to tap into loss mitigation experts will move them toward reaching a workable resolution that will allow them to remain in their homes and focused on work. But above all, making available a resource of this scope is a low cost way to demonstrate compassion and understanding during a time of unprecedented financial hardship and distress.




Nic Quiles is CEO and general partner of Wisconsin Loss Mitigation, LLP, the nation’s leading loss mitigation firm. WLM, LLP focuses its expertise in the areas of facilitated, third-party mediation and loss mitigation resolution. Its expert staff, with over 70 years of accumulated experience in the Personal Finance and Real Estate industries, offers effective, decisive and constructive counseling services for homeowners and financial institutions alike that are seeking to employ the measures of prevention, intervention, and stabilization, pre and post foreclosure.

For more information, Quiles can be reached at 888-762-7557 or nic.quiles@wilossmitigation.com. Or, please visit www.wilossmitigation.com.


“Mediation. Communication. Resolution.” ©