Financial Wellness and EAP’s.

Do you know the fastest-growing reason for employee assistance program (EAP) use since 2003?  

It isn’t for substance abuse or depression. Actually, it’s financial in nature. Over the last five years, there’s been a stated 69 percent jump in worker employee assistance program (EAP) use related to personal financial concerns.

The trend isn’t all that surprising in this era of salary freezes, high deductibles and cost-sharing of benefits premiums.

Statistics show that, for the first time since the Great Depression, the average American has negative savings - in other words, debt exceeds income - in a average month.

A lot of employees are racking up high credit card debt, make the problem worse.

Troubling trends

Here are some ominous numbers from a recent staff member survey -

• 27 percent of respondents said they were “one major setback away from financial disaster”

• 22% say they were “worse off than last year, with less take-home income and more debt”

• 40% say their corporation is “insensitive to their employees’ financial needs,” and

• only 6% said they felt comfortable with their current financial situation and ability to manage their debts.

The majority of personal-finance related employee assistance program use arises from concerns over debt management, household refinancing and/or failed investments.

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