Shame as an obstacle in financial worries: offer employees a helping hand

If someone has debts or financial worries, shame plays a major role. People therefore prefer not to talk about it and are sometimes even afraid of being fired. It causes persistent stress, the employee is more easily distracted, and calls in sick much more often. That’s why you should support your employees with financial matters, because they are more productive and happier when their finances are in order. I’d be happy to explain how you can approach this.

By Myrtille van Hout

Inform your employees
By providing internal information about financial worries and money matters, you as an employer can signal that this topic is open for discussion. For example, use the intranet, the (digital) staff magazine, or the newsletter to clearly indicate where someone can go for help, both inside and outside the organization. Hanging up posters, including an information leaflet with the payslip, or placing flyers in central locations in the building are also examples of communication channels.

Recognize the signals
Especially in these times of expensive groceries, extreme energy prices, and a turbulent housing market, it is important to be alert with all employees. Here is a list of common signals:

• • Change in behavior: no longer joining after-work drinks, more irritable, suddenly having trouble collaborating, not participating in gifts for colleagues, not going on vacation anymore
  • Looking tired or appearing unwell
  • Noticeably lower productivity
  • Asking when the salary will be paid exactly
  • Requesting extra hours or an advance/loan
  • Life events such as divorce, having a child, or the death of a loved one
  • Calling in sick more often: financial worries can lead to physical complaints

Train managers and prevent a bailiff
Discuss this topic with the managers within your organization and make sure they recognize the signals. Explain how they can start a conversation about financial matters and that, for example, a budget coach can prevent someone from ending up in debt restructuring. Often, within two to three appointments, the financial situation is already mapped out, including payment arrangements, so it is also an inexpensive way of coaching. Make sure your employee gets help before a bailiff gets involved. As an employer, you are obliged to cooperate if wages are garnished. By then, it’s too late for a budget coach or other counselor. It also saves you a lot of time (and therefore money) if your payroll administrator doesn’t have to deal with wage garnishments.

Employer to the rescue: a practical example
A young female employee had taken over her brother’s debts and also had student loans, so her financial burden was high. At work, she avoided conversations about the weekend or vacations, because she had no money to do fun things. Stress and shame led to gloominess, and she became a frequent absentee. Eventually, she agreed to share her financial problems with her employer. Just having the conversation was a huge relief. The employer took over her debts. Instead of multiple creditors, she now had only one, with a reasonable repayment plan. This arrangement gave her a great deal of peace of mind, allowing her to regain the energy to do her job well.

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