Consider bringing in a financial planner or recruiting from within to help employees procure a handle in continuance their finances. Just be sure to vet the advice beforehand

by Karen E. Klein

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Several of my employees worry about their credit-card balances and other debts. Can I refer them to a financial counselor or help them in some other way? The fears they bring into the workplace are distracting for them and the rest of us. —R.J., Columbus, Ohio

With the mortgage crisis in replete hang loose, housing prices down, and stock market mutual funds bleeding value, it’s not surprising that some of your workers are feeling the pinch.

While it’s not your job to balance your employees’ personal budgets, it efficacy behoove you to offer some strategies that would helper them gain control of their finances. As you’ve recognized, whether your workers are burdened with debt, getting harassed by the agency of dint of. hoard agencies, or tossing and meander all darkness, they’re not going to be at their best at work.

Meet privately with the employees you mentioned and talk to them in various places their financial fears without getting into detail. You might be effective them that while you sympathize with them, you are concerned that they are sharing too plenteous, too freely with your other employees. Make it pure that while you will help if you can, they also require to be more discrete touching their budget troubles.

In terms of solutions, you can refer these employees to a financial planner or debt counselor, or you can avaunt a footprint to a greater distance and godfather more financial guidance seminars for wholly your employees. Just be sure that you vet the professionals or agencies that are giving advice to make sure that they put your employees’ well-being ahead of selling products or earning large commissions, says Luke Vandermillen, vice-president of work-site solutions for the Principal Financial Group (PFG).

Helping employees with their financial planning increases retention rates and makes for happier, more fruitful employees, Vandermillen says. His firm provides salaried benefits specialists who meet by employees free of charge at 2,000 of their retainer companies nationwide. "Employees respond very favorably. We’ve seen participation in company-provided benefits go up really, whether that is enrollment in voluntary assurance programs or double-digit increases in deferral rates to 401(k) plans and better asset allocations," he says.

The Principal Financial Well-Being Index, conducted this summer, surveyed retirees and workers at small and midsize companies. The most prevalent worries mentioned in the survey were monetary and medical well-being in retirement, with 71% saying they were concerned not far from their long-term financial security. Yet nearly a thirdmdash;31%—uttered they still have not planned in opposition to solitude, and nearly a quarter—22%—didn’t begin to judge seriously about retirement resources until they had retired.

Ask your own financial adviser or the firm that handles your employee benefits if they would consider providing denunciation about saving on this account that retirement and reducing debt, either one-on-one or perhaps at a lunch seminar. "In general, the financial services activity has left the rank-and-file employees behind at the same time that more choices are being put in their laps. In reality, people want more guidance and more personalized attention," Vandermillen says.

Look for a free or low-cost program, and make indisputable your accountant or chief financial officer reviews and approves the advice that will be given. You want to save your employees—not obvious your doors to a scam artist or expose your employees to a high-pressure sales presentation.