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Supporting employees through their debt crises boosts workplace productivity12 November 2007As consumer debt escalates and the costly Christmas season approaches, Britain's bosses need to be aware of the signs and symptoms of financial problems as many employees may be bringing their money worries to work. The Bank of England's Thursday decision to leave interest rates at 5.75 percent means borrowing costs are at their highest level for six years. This high rate, combined with concerns about the possible effects of the credit squeeze on the economy, is pushing consumer debt up the news agenda, so companies can ill afford to ignore its impact on the psychological wellbeing of their employees. Bupa, which looks after the health and wellbeing of staff working in 88 percent of FTSE 100 companies, recommends that employers familiarise themselves with the symptoms an individual with financial difficulties might exhibit, so they can offer appropriate support and help alleviate problems that may cause poor work performance and days off work. Stress is the number one cause of absence for non-manual workers* and with absence reportedly costing UK businesses more than £13 billion annually, organisations could benefit from introducing health and wellbeing programmes to help manage the worries of indebted employees.** Tony Urwin, occupational psychologist and general manager of Bupa Psychological Services and Bupa Wellness explained: "A person whose financial future is uncertain is highly likely to feel pressurised and unable to cope. Their behaviour is, therefore, likely to be similar to that of someone suffering from extreme stress. The visible work-based symptoms of stress can include short temperedness, an inability to plan and control work, poor relationships with colleagues or clients and loss of motivation. Other very simple tell-tale signs may be the start of frequent private phone calls – as someone burdened by debt may start receiving regular calls from their bank, credit card company or other organisations chasing payment." Other behaviours that may occur, but which may initially be harder to detect, include staff theft or an increase in fraud as employees turn to criminal behaviour to pay creditors. Individuals may also become increasingly dependent on alcohol or drugs, putting their health and workplace safety at risk. Mr Urwin continued: "While it is difficult to measure the impact of employee stress on the bottom line, it is a widely reported reason for sickness absence and few would argue with the premise that staff whose debt concerns have been reduced are likely to be less distracted and, therefore, more efficient in the workplace." Commenting on the options available to employers, Mr Urwin highlighted the importance of striking a balance between communicating that help is available and enforcing an intervention. He said: "Personal finance can be a sensitive topic so it is crucial that programmes designed to help employees focus on offering supportive advice as opposed to initiating unsolicited interference, which could quickly alienate staff who may already feel isolated as a result of their problems. "Introducing elements of an externally-managed employee assistance programme, such as a helpline, may help employees who are embarrassed to seek advice. Some employers go a step further and offer low-interest loans, which are paid back through salary deductions, to allow staff to consolidate their debts." Research shows that conversations about debt (two percent), financial issues (two percent) and independent financial advice (three percent) comprise seven percent of calls to Bupa-managed EAP helplines. Mr Urwin commented: "Employers may be surprised to learn that money-related issues are more frequently cited as the reason for calling a helpline than trauma or substance abuse problems." The cost per head of an EAP helpline is low in comparison to cost of sickness absence and gives employees, who may not know who to turn to, access to independent information on how to budget, prioritise debts and consolidate loans. Advisors will also outline how to negotiate with creditors, the implications of bankruptcy and how debt can impact credit ratings. For more information on Bupa's EAP services and other wellness initiatives, please visit the Wellness website. *CIPD Annual Absence Management Survey 2007 Back to the latest press releases
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