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Conquering employees' personal finance woes pays off for employers

The current mortgage and credit crisis is taking a huge economic toll on American businesses. Many employees are experiencing financial anxiety because of record levels of debt, limited financial planning skills and a lack of knowledge to wisely manage their budgets. In 2007, 405,000 households, more than twice the previous year, were in the process of losing their homes (1). And research shows that one-third of U.S. workers suffer from financial stress that negatively affects their health, morale and productivity (2).

Employees' financial stability impacts employers
The impact of financial anxiety is determined by the duration of the stressors and by how employees respond to them. "If not dealt with, stress can lead to poor concentration, productivity and low attendance at work. It can also lead to weight loss and gain, sleep disorders, high blood pressure, increased cardiovascular risk and reduced immunity," says Mary Miller, Ceridian LifeWorks director of Health and Productivity. "Professional and personal relationships can be strained; we all hear about financial stress affecting marriages in a negative way."

An employee's financial stress and anxiety can have a negative impact on your bottom line. It's estimated that employers pay $2,000 per employee per year for lost productivity. (3)

Counseling services for financial stress; coaching services for related health concerns
Ceridian LifeWorks has the range to help your employees holistically with financial stress and the health issues that can stem from it. Companies that offer both Ceridian Employee Assistance Program (EAP) and Ceridian Health Management Services put their employees in touch with supportive tools that help employees personally while helping employers control costs, boost productivity and attract high quality job candidates.

With assessments and triage processes, LifeWorks can help employee callers tackle issues holistically. "When employees call our EAP, we conduct a thorough assessment to determine the source of the problem and find the resources that best meet the needs of the caller," says Jonathan Hefner, Ceridian LifeWorks manager of Legal and Financial Services. "For example, someone might call because they feel depressed. During our assessment, it may reveal the person is depressed because of long-term financial stress. We would then give referrals to resources that can help them address the underlying financial problem."

Likewise, callers who contact our health coaches about weight and stress issues may be directed to our financial team, or other specialty areas, if the coach feels counseling can get at the root cause of the situation.

When employee participants contact us for health coaching, the initial call assesses the level of need and the caller is triaged as appropriate. Callers are assigned to a health coach who usually works with a participant through the entire process, over several months or more. Our health coaches use assessment tools, goal setting and study guides to help participants.

Coaches offer support and provide resources and tools during the first in-depth phone call with a participant. After the first call, the coach contacts the participant in the following weeks to find out how they are progressing and addressing any barriers and to offer additional support and resources as needed.

Subsequent follow up calls are completed with the participant in which progress is assessed via questions designed to measure success outcomes of the program. Current results from our Stress Management program show an average of more than 50 percent improvement coping with stress. This can represent a huge improvement in financial stability, improved physical health and workplace productivity for participants.

For more information about Ceridian LifeWorks EAP and Health Coaching services, contact your Ceridian representative.

Sources:

1. CNN Money, January 29, 2008, Foreclosures up 75% in 2007
2. The Money Blog, October 12, 2007, Memo to Corporate America: Financial Stress is #1 Employee Concern and Hurts Your Bottom Line
3. 2004 Occupational and Environmental Medicine Journal, New Cornell University Study