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 Author: John Hall, chief executive, newtomorrow.com
Topic: Debt | getting your employees out of a black hole
About: newtomorrow.com
Newtomorrow.com specialises in consumer debt, focusing on debt solutions tailored to the circumstances of each individual. Newtomorrow.com is part of the Invocas Group, one of the UK’s leading debt solutions companies and the market leader in Protected Trust Deeds in Scotland, with a market share of more than 18%. Invocas floated on the Alternative Investment Market in March 2006.
OVERVIEW
• No-one can have failed to notice that personal debt is a growing problem for large parts of the population. At the end of December last year it stood at £1,.409 billion, and is growing by £1 million every five minutes.
• And it’s getting harder to leave money worries at home. Research shows that financial stress is encroaching on the workplace and causing employers lost time as distracted employees try to make payments at work or simply just worry about their problems.
• Offering confidential debt advice can help your employees to refocus and lift performance.
WHEN TO USE THIS GUIDE
• Spiralling debt levels, lenders refusing credit, ever-increasing cost of living – HR should be thinking about this already.
• When formulating employee benefit packages, or reviewing existing policies.
• If employees give any indication debt is becoming a personal problem for them.
10-STEP ACTION PLAN
1. Break with tradition
Employee benefits tend to be things like bonuses, gym memberships etc. Something like a free debt counselling service could be worth its weight in gold to employees.
2. Take off the blinkers
Few people are keen to talk about their financial problems, so be aware that if someone shows a dip in performance it could be money related.
3. State your case
Researchers have looked into the impact of debt on productivity and found a significant link. Arm yourself with the facts and show how debt counselling services can boost the company’s productivity.
4. Stay in the background…
Your employees are less likely to want to seek advice on debt if they suspect their senior managers will be privy to the details of their financial trouble. Make it clear any debt advice is totally confidential and provided by specialists.
5. … but don’t disappear altogether
Hopefully, your employees trust the company (and if they don’t, debt is the least of your worries). Any debt adviser should be happy for you to offer the service under your own brand so employees don’t feel as though they’re being shunted off to complete strangers.
6. Keep it in context
Staff debt counselling indicates an employer who cares, but does it tie in with the overall culture of the organisation? If your entire workforce is demotivated and senior managers rule over subordinates with a rod of iron, maybe a staff punchbag with the boss’s face on it would be more appropriate...
7. Assess the impact
We’re not suggesting productivity will rocket within a month of offering debt counselling, but over a period of time there should be noticeable improvements. Your debt advice provider should provide you with regular reports of uptake without divulging details of individual queries.
8. Allow for feedback
Give your employees the chance to anonymously appraise the service – this could be via a secure section of the company intranet or some other method. Whatever form it takes, it must be confidential.
EXPECTED OUTCOMES | RESULTS
• Happier, less-stressed and more productive employees.
• Goodwill obtained from employees who value having an employer which cares about their well-being outside of work – even if they don’t use the service.
• Ultimately, the aim is to increase productivity and improve the bottom line.
FOR MORE INFORMATION
 newtomorrow.com
Contact: John Hall
T: 0131 222 2460
E: jmhall@invocas.com
www.newtomorrow.com / www.invocas.com
ADDRESS:
newtomorrow.com
2nd Floor
Capital House
2 Festival Square
Edinburgh
EH3 9SU
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