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 reported 69% jump in staff member 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 workers 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 percent 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 EAP use arises from concerns over debt management, household refinancing and/or failed investments.
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