July 23, 2008

Human Resources Executive

Financial Stress Squeezing Employees

Employee assistance providers are seeing a spike from callers in financial and legal distress, spurred on by hikes in adjustable-rate mortgages amid level wages and increasing inflation. Providing access to financial advisers in group or one-on-one settings can help.

Kim Fiorino, a financial specialist with ComPsych, an EAP based in Chicago, says some of the callers to her organization are at a complete loss on how to cope on missed mortgage payments. “I’ll talk with people who’ve not paid their mortgage in almost a year, and are still living at the property and wondering what their options are,” says Fiorino.

Although each case is unique, Fiorino advises callers on ways to find alternative funds from potential resources, such as 401(k) plans, or ways to deal with a caller’s lender to make partial payment terms. “I think the EAP is a resource that a lot of employees are not aware of, especially on the financial counseling end,” says Fiorino. “Now, we’re seeing this large spike in calls related to mortgage problems.”