As the cost of living crisis continues to squeeze personal finances, employers are being urged to watch out for the impact that debt problems can have on employees.
With more people struggling to afford utility bills, rent, mortgages and food, this can have a huge impact on an individual’s mental health and overall productivity.
Personal debt is something that affects a wide number of people around the UK. It comes in a variety of forms; including overdrafts, credit cards and loans. The average adult in the UK that is struggling with their personal finances, has just over £15,000 in unsecured debt. Whilst this is the average figure across the UK, for some people the amount that is owed could be much higher than that.
Layla Johnson, regional manager at Creditfix, explains how employers can approach the challenge of personal debt in the workplace. She said:
“Debt can have a huge impact and whilst sometimes it can be confined to their personal life, it can sometimes spill out into their professional life. An employer has a duty of care to their employees. This can be in the form of providing them a safe working environment, and all of the facilities and equipment that they need to do their job. However, it can sometimes mean that you need to take an active role in helping and supporting them in their personal life and wellbeing.
“The first thing to remember is that it can be difficult for someone to admit their issues to their boss, regardless of how much it could be impacting their work. The situation should always be approached carefully and with patience and empathy. It is not a requirement for your staff to disclose any of the debt issues that they are currently facing; however, proactive management can help to create a sense of honesty and openness.
“One easy way to do this is to provide information regarding free debt advice in the staff areas. You could also organise experts to come into your workplace and lead workshops and advice groups regarding debt help.
“If your employees trust you, and trust that you will treat their issues with respect, then they are much more likely to come to you when they have some issues in their personal life. Whilst they may be feeling angry, stressed or anxious about their issues, simply by discussing their personal debt issues, they may start to feel better about the situation.”
Spotting the signs of an employee struggling with debt can be difficult from an HR perspective as there may not be as much staff interaction on a day to day basis. Layla outlined some of the tell-tale signs and behaviours that may indicate someone is struggling with money worries.
1. Absenteeism
Employees worrying about their finances tend to use more sick leave and have unexpected absences more often.
2. Increase in sick days
If stress persists it can lead to poor mental health, and can even trigger physical health problems, such as high blood pressure.
3. Irritability
People who have debt issues can also become angry about their situations, and angry with themselves. They could even have misplaced anger with their employer or colleagues.
4. Difficulty concentrating
Distractions mean that an employee is less likely to be focusing on work and may be worried or stressed about financial issues at home.
5. Tiredness
Those with problems with personal debt may be living in a continuous state of worry and restlessness. This could cause them to be unable to sleep and come to work appearing tired and fatigued.
6. Anxiety and/or depression
Constant worrying, stress and potential lack of sleep can all lead to severe mental health problems, look out for a dip in your staff’s confidence.
7. Drop in productivity
It’s no surprise that all of these signs have a cumulative effect, meaning a drop in productivity and an increase in missing deadlines
Find out how to access NHS mental health services and where to get urgent help: https://www.nhs.uk/nhs-services/mental-health-services/
