Helping Employees Cope With Financial Stress

January 03, 2012

People everywhere are tightening budgets, looking for ways to cut back. The stress that comes with struggling to pay bills or put food on the table makes it hard to keep your mind on work. Employees often suffer in silence, too embarrassed to reach out for help, or unsure of where to turn.

Financial woes are even linked to weight gain. A public health study on the association of obesity and debt found the higher an individual’s debt, the greater their chance of being overweight or obese, regardless of other variables. Among the theories for this connection: psychological distress caused by high debt levels can lead to a depressed emotional state, which can result in eating more as compensation and gratification.

Consider a financial awareness and education program for employees as part of your overall wellness strategy, specifically to prevent high debt levels. Address financial well-being issues in employee communications along with traditional wellness topics. Strategic messages can point workers to resources for getting organized and tackling financial problems. If your employee assistance program (EAP) offers financial guidance for workers and their families — or refers callers to community resources — get the word out.

Share these financial wellness tips:

• Track spending for a month to see where every dollar goes. Plenty of inexpensive or free programs will do this for you, but pencil and paper or a simple spreadsheet works just fine, too.
• List all sources of household income plus expenses, bills, debts, and due dates. Knowing exactly what you’re dealing with helps buffer the stress and confirms your ability to manage it.
• Create a written budget — with your spouse or partner — for each month, based on true expenses and income. Be sure to allocate funds regularly for savings or debt reduction to increase long-term stability.
• Distinguish between needs and wants. Could a $7000 car get you around town just as well as a $30,000 car? Reduce unnecessary expenses wherever possible. Do more cooking at home — and pack lunches for work. Reduce your current level of cable service and watch programs for free on the Internet. Cancel all but a few favorite subscriptions.
• Seek professional advice on tough financial matters instead of wasting time and energy worrying about them.
• Take care of yourself, even when money is tight. It doesn’t cost anything to go for a walk, play with your kids, catch up with friends, or check out the latest fiction at your local library. When you make healthy choices, you’re less likely to suffer from stress-related conditions that can drive up healthcare expenses.
• Keep it in perspective — you can’t buy happiness or good health. And the balance of your checking account isn’t a measure of your character or value as a person.

 

Practicing these tips helps workers focus on what they can control — doing their best work, sticking to a budget, and living a healthy lifestyle. Providing tools and resources for smart financial decision making can go a long way toward relieving financial stress — freeing up the energy employees need to thrive at home and on the job.