Being in financial difficulty can be one of the most stressful and exhausting things a person can experience. Whilst the majority of UK employers are invested in their employees health and well-being, they tend to fall behind when it comes to their financial well-being.
Being over-indebted can be one of the greatest sources of emotional and mental stress, which could ultimately land up affecting the performance of your employees. Alerting your employees to the services of a reputable Insolvency Practitioner, like Debt Movement, has the potential to add immense value to your business through debt education and debt solutions. Let’s find out how.
How can debt affect the performance of your employees?
Interrupted working days
If your employee owes money to their creditors, then they will more than likely try and call your employee whilst they are at work. This can not only distract them, but it can also take them away from their desks and from time sensitive tasks. Even though this distraction may only be for a few minutes, it will likely leave them distracted for much longer than the initial phone call, as it will leave them worrying and thinking about their debt.
Taking on additional employment
If an employee is over-indebted, struggling to manage their finances, they will likely be looking for a new employer or looking to take on additional employment. This could be in the form of either freelance work, a second job after their normal working hours or a completely different job at a better rate of pay. There’s no doubt that this will have an impact on their performance. Where additional employment is obtained, this will impact their work-life balance and make them even more stressed, irritable and tired. They will be so exhausted from over-working which will hinder their performance and open up room for mistakes.
Lack of sleep
Sleep is extremely important in maintaining good health, well-being and performance. The worry and stress that comes with debt can often leave people struggling to sleep at night. Lack of sleep can be detrimental to the performance of your employees. If they are feeling tired, they are likely to be less productive and wont focus on tasks that need to be completed. Furthermore, when an employee is tired they are more likely to make mistakes, which could damage your business’s reputation.
An increased risk of workplace accidents
Those who work in a factory or construction site are generally considered to be working in a high risk environment. Debt stress can put immense pressure on anyone, but someone who has a labour intensive job is at more risk of having a workplace accident. They may be tired or simply not focused on the task at hand due to their debt stress which can lead to mistakes which could be extremely dangerous.
Debt guidance and solutions
Debt solutions like Individual Voluntary Arrangements (IVAs), Debt Relief Orders (DROs) or Debt Management Plans (DMPs) can protect over-indebted people, with the former two solutions offering them legal protection and assistance when in financial difficulty.
A person who enters into an IVA:
- Can’t be contacted (harassed) by creditors or debt collectors.
- Has their assets (house, car etc) legally protected from repossession.
- Regains control of their life through reduced debt repayments and once again has disposable income for living expenses.
Whilst you do not have the ability to solve all of your employee’s debt issues, there are ways that you, as an employer can help. Assisting your employees with debt education and debt guidance can help alleviate all of the issues mentioned above. They will not only be empowered to take control of their finances so they can live their best lives again, but will also be more focused and enabled to perform better at work.
Partnering with Debt Movement
Debt Movement has a vision of helping people become more financially educated.
As experts in debt and insolvency, Debt Movement proposes partnering with your business to build out modules focused on debt, insolvency and the various options available to over-indebted individuals.
By partnering with a trusted and reputable debt guidance and solutions firm like Debt Movement, employers can give their employees who are struggling financially, the opportunity to learn how to manage their money and ultimately reduce their debt stress guiding them on their journey to financial freedom. Whilst all of this will not provide a wealth of knowledge to your employees, it will also help improve productivity in the workplace.
If you would like to partner with Debt Movement, please email us on: marketing@debtmovement.co.uk
At Debt Movement, our mission is to help people who have found themselves in financial difficulty. We provide non-judgemental debt guidance and services that help people move out of debt. Our qualified team of debt specialists have helped over 35,000 people move out of debt and find financial freedom.
