Financial problems on the job

Statistics show that people are very reluctant to talk about financial challenges in general and, for a number of reasons, this is particularly true in the workplace. In fact, both employees and employers are reluctant to broach the topic of money. However, it has been proven that the poor personal financial behavior of employees is related to employee productivity.

According to Dr. Tom Garman, professor emeritus at Virginia Tech University, some direct employer costs of employees with poor personal financial behaviors are absenteeism, tardiness, accidents, thefts, and, in some states the expense of handling wage garnishments. For the employee, poor job performance places them at risk of losing necessary income and benefits.

So, what’s the solution? Employers certainly shouldn't go digging into people’s personal lives willy-nilly. I think the answer is to implement an employee fiscal fitness program. As an example, the program offered through MMI includes benefits such as:

  • Free counseling
  • Debt Management Plans (DMP)
  • Educational programs
  • Timely articles for use in employee newsletters
  • Marketing materials, including inserts, brochures and signs
  • Annual training program for the employer’s managers
  • Unique telephone number for employees to use

If you’d like more information about implementing an employee fiscal fitness program, contact MMI's education division. It's a win-win.

Kim McGrigg is the former Manager of Community and Media Relations for MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.
  • The National Council of Higher Education Resources (NCHER) is the nation’s oldest and largest higher education finance trade association. NCHER’s membership includes state, nonprofit, and for-profit higher education service organizations, including lenders, servicers, guaranty agencies, collection agencies, financial literacy providers, and schools, interested and involved in increasing college access and success. It assists its members in shaping policies governing federal and private student loan and state grant programs on behalf of students, parents, borrowers, and families.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.