In a study of 436 employees who had used a financial advisor through their EAP, 91% found the consultation to be effective, 74% had reduced stress, 67% had improved health and well-being, 39% had a reduced rate of absenteeism, and 36% had improved work productivity.
~“Employee Assistance Program Outcomes Similar for Counselor and Legal/Finance Consultation Clients,” presented at the American Psychological Society Annual Conference.
Employee financial distress harms employers:
- Increased absenteeism
- Lower productivity
- Increased turnover
- Decreased employee health
- Diminished work environment
The numbers are daunting:
- Almost 2/3 of Americans (61%) report having serious financial problems1
- Less than 1/3 of employees (29%) say they have savings to cover six months of living expenses2
- Just over 1/2 of American families have a retirement account3 (Median value = $43,000)4
- There are increases in:
- Employees asking HR for financial help
- Wage garnishments by debt collection agencies
- Employees asking for pay advances
- More employees than ever are interested in obtaining advice and guidance from their employers for the financial problems5,6
The good news is you can take steps to alleviate your employees’ financial distress, help educate them, and reverse the effects of financial distress on your bottom line.
Download our brochure and frequently asked questions document. Read the 2012 Society for Human Resources Managers (SHRM) 2012 SHRM Study on Financial Education Initiatives in the Workplace. See FFW highlighted in the November 2012 issue of FFW in HR Executive Magazine.