However, financial issues outside the workplace always take their toll within the workplace, even if the primary cause is not known to you, the business owner. For this reason, it is important to offer financial and debt assistance to all of your employees.
If someone takes you up on your offer, you may be able to offer a solution to a problem that would otherwise threaten the operation of your business.
It’s easy to understand how personal debt might threaten the performance, happiness, health, and longevity of your employees. But it’s not so easy to know how to help. Here are three suggestions that might help individual employees get out of a hellish debt spiral.
An IVA, or Individual Voluntary Arrangement, is one of the best ways to consolidate consumer debt without allowing it to grow further while it is being paid off.
There are many details you can see in the link above, but some of the important points are as follows: the consumer uses a service to get various debtors to agree to accept such-and-such payment as restitution for a debt; the consumer makes a single monthly payment to the company that brokered the deal; this payment is distributed to the debtors, who cannot add additional debt once the agreement is made; the consumer pays off the debt and they are free and clear. It’s a great service that offers a way out for people who thought they’d never have one.
Most people have trouble handling debt and money because they don’t understand how personal money management actually works. One of the best ways to teach this stuff is through a conversation with an expert.
Financial advisors are not expensive. You can bring one into the office every now and then to have half hour sessions with employees who want the get better with money. You’ll be amazed what simple explanations can do for people who don’t have excellent financial skills.
It is common practice for workplaces to offer various saving and investment incentives, such as dollar matching in retirement accounts, in order to get their employees to better manage their own money.
Look into what is available and commonly practiced by companies like yours, and you’ll find programs that offer tremendous value not just to your employees, but to the overall good and productivity of your company.
There are many ways to help a person get out of debt, but not all of these techniques are available to businesses, who have to be sensitive about the private information of their employees.
With care and planning, you should be able to offer new methods of debt reduction prowess to your employees, and soon you’ll develop a new standard of personal finance which will rub off on the security of your company, present and future.