The fastest-growing use of employee assistance programs (EAPs) has been tied to employees’ financial worries.
Over the last five years, there’s been a reported 69% jump in employee EAP use related to personal financial concerns. The trend is not all that surprising.
Statistics show that, for the first time since the Great Depression, the average American has negative savings — in other words, the person’s monthly bills exceed his or her income. This includes rent, transportation, credit cards and other expenses.
With salaries frozen in many organizations and many employees racking up higher and higher credit card debt, the problem may continue to get worse.
Here are some ominous numbers from a recent employee survey:
- 27% 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 employer 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 EAP use arises from concerns over debt management, household refinancing and/or failed investments.