Counseling sessions intended to help employees repay their outstanding monetary obligations and organize their finances now play an increasingly important role in promoting labor stability.

Investigating the changing trend in corporate culture, a recent study conducted by the International Foundation of Employee Benefit Plans (IFEBP) highlighted the dramatic disconnect between workers' economic unease and the preparedness of corporate leaders to offer financial guidance within the workplace under ordinary business conditions.

The IFEBP survey queried the representatives of more than 400 public and private organizations within the U.S. and Canada. According to the resulting estimates, just about half of all participants deemed their workforce to be significantly challenged by the expenses of basic living, and nearly two-thirds presumed additional difficulties would hinder efforts at saving for retirement or juggling the costs associated with unsecured revolving debt loads.

Fortunately, industries of all stripes have come to embrace the importance of alleviating worries over fiscal ruin from household mismanagement, and companies large and small are devising new strategies. Corporate giants install departments devoted to employee debt servicing while small businesses enlist the occasional help of independent financial planners.

While a few hidebound executives (less than five percent, given IFEPB figures) may argue that a firm's responsibility to employees begins and ends with signing their checks, the most successful companies have come to realize that more invasive strategies are required to ensure their best and brightest operate at peak efficiency.

Given the economic uncertainties of our era and the dangers posed by medical bills or tuition loans, even the most fiscally-practical employees can find themselves trapped beneath the vicious spiral of compounding interest. While many would manage to figure their own way out from underneath seemingly unbearable debt loads, many more will inevitably succumb to the constant pressures.

Most crucially, for corporate concerns, anyone struggling to turn around their family's financial tides without professional assistance will inevitably find their work helplessly neglected as the non-stop tensions take their toll.

Considering the proven correlation between mental health and physical fitness, ill-prepared businesses unwilling to ease such burdens plaguing their labor force may be forced to confront the repercussions only after noting the rise of illness and preventable injury.

If there seems to be little consensus upon the corporate world's current array of potential remedies — a dizzying breadth of advisory measures ranging from the banal (retirement income calculators, projected account balance statements) to the admirable (voluntary workshops, personal consultation services) — the January 2016 snapshot of current practices at least found an increasing momentum toward assistance measures.

Indeed, according to IFEBP data, a third of the organizational programs supporting financial education originated less than five years ago. Moreover, the corporate respondents to the formal survey expressed an overwhelming belief that the trend would progress regardless of the larger economic forces at play.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.