How to help employees not to get into debt?

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How to help employees not to get into debt?

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Knowing how to help employees not to get into debt allows the organization to expel – or minimize the presence – financial stress from their routine. After all, this is one of the major causes of stress in the country, and the impacts of this directly affect the performance of employees. To this end, HR and management can come together to guarantee some effective measures in this regard, such as:

  • establish a financial education program;
  • negotiate financing conditions with partners;
  • assess situations individually;
  • create healthy financial habits campaigns;
  • offer a career path;
  • work with wages on demand.

When almost 85% of thousands of people interviewed say they have a hard time dealing with money, you realize that you have a potential problem ahead of you.

This was, at least, one of the conclusions reached with the research of the UK residents Association of Financial Educators (Abefin). That’s why companies have played an active role in learning how to help employees not to get into debt.

After all, this kind of problem doesn't stay at home. He accompanies people to work, to their leisure options … All the time, as the lack of money and debts limit all their decisions.

Let's see, then, how the major market trends have pointed out to the company, how to assist in this process? Just follow through with this reading, and understand how to help employees not to get into debt!

What are the main causes for indebtedness?

Before helping employees not to get into debt, your HR must be aware that the problem arises in different ways. And, next, let's talk a little about the main ones!


A bargain, in the window, makes the person forget the financial planning. A trip to the supermarket, with the list in hand, turns into a saga full of items that were not even on your little paper … Anyone who identified with this may suffer from uncontrolled spending.

And today, this can be one of the great problems to generate indebtedness – and financial stress – because it shows, above all, the lack of a financial education.

Through it, people tend to strategically analyze their purchases. It is not a matter of being stingy, but of knowing how much can be spent, throughout the month, without harming your entire income.

Accumulation of debts

On other occasions, one debt led to another, which brought more delinquent accounts and, when it is less noticed, the monthly income does not close the current accounts, nor the arrears.

This is one of the country's biggest problems. Including, the average number of defaulters has only grown – the average debt in the country is R $ 3,277, for example.

In these situations, people tend to use the credit card (the minimum or installment payment of the invoice, for example) or even the overdraft. Situations that, although they seem to solve the problem, in the short term, may actually hide bigger problems for the future – such as the high interest rates practiced.

Loans and financing

Complementing the above idea, loans and financing are often requested for the acquisition of a good (such as a car or property) and even to get rid of smaller debts.

Except that, without financial planning or a reserve that protects the person against unforeseen circumstances (such as a layoff), these resources soon became accumulated debts, too.

Emergency spending

Finally, emergency expenditures are among the major causes of indebtedness. Just think, for example, of a situation in which you thought you could save a little money, at the end of the month, but you had to invest in medicines, diapers or any other unforeseen need.

In a month, this only impacts your planning on time. But, when it becomes recurrent, it is common for people to lose not only plans for the future, but the pace to bear monthly expenses.

How can the company help employees not to go into debt?

In this sense, it is worth highlighting how much financial stress affects people's health. And they take these problems into companies. They are irritated, impatient, out of focus, unproductive and unmotivated – in addition to other symptoms common to stress.

Therefore, the company can help employees not to get into debt and, thus, transform the cost of strategic actions into an investment to obtain better results, in addition to:

  • more employee engagement and gratitude;
  • greater retention power and attraction of talents;
  • motivation and productivity, which generate more profitability for the organization;
  • more reputation for your business.

Focusing on the financial well-being of the entire organization, therefore, benefits everyone involved. And that is why, below, we will show you which actions can yield this positive effect!

Establish a financial education program

By knowing what are the problems that most affect the daily lives of its professionals, HR can promote a consistent financial education program. This may involve:

  • workshops;
  • consultancies;
  • simulations;
  • financial education courses.

In addition to lectures and situations that help employees to see solutions for the debt that has damaged their routines and habits.

Negotiate financing conditions with partners

It is undeniable that companies have good relations with the financial institutions with which they maintain their accounts and handle employee payments.

As a result, good opportunities may arise to help employees not to get into debt through partnerships. Imagine, for example, proposed facilities for defaulters to pay less interest, or to pay in more installments (in a reduced monthly amount)?

The solutions are quite broad and diverse, but possible. Just contact the manager and evaluate the best options based on the profile of your employees who live with the debt.

Assess situations individually

If the problem is not chronic and neither is it concentrated in a single situation that leads to indebtedness, you can consider individualized solutions.

This may take more time and investment, but it is interesting because it sets different standards for your company to deal directly with the financial stress on multiple fronts.

Create healthy financial habits campaigns

How about a practical and quite simple tip? Distribute, among the company's communication channels, tips on healthy financial habits, such as:

  • investment alternatives;
  • strategies to save money;
  • actions to identify superfluous and unnecessary expenses;
  • tips for balancing costs and monthly income.

Thus, even though the company's involvement is not great, it already tends to arouse interest and financial education in people's habits. Very functional, even, if we think preventively to help employees not to get into debt, in the first place.

Offer a career path

Through the career plan, the company is able to keep employees motivated and engaged. An efficient solution for them to find on a professional hierarchical scale, the solution to end debts in the short term.

Work with salary on demand

Finally, your company can help employees not to get into debt by giving them autonomy and flexibility in their payments.

And, the best part: without changing anything in your payment structure and cash flow!

By the way, we have a very interesting text that talks, precisely, about innovation without directly impacting the payroll Check it out after this reading 🙂

Returning to the solution mentioned in this topic, the on-demand salary it is an alternative so that its professionals can request the salary advance based on the days already worked. Whenever they want, whenever they need it.

Thus, the use of overdraft is avoided, for example, and makes your employee less dependent on the payment slips' due dates. They program themselves according to their needs and objectives, increasingly scaring the indebtedness of their routines.

And, in your company, is financial stress a reality that you have not yet managed to combat efficiently? Share your experiences with us in the comments field of this post!


HR Consultant UK can help if you have any questions about How to help employees not to get into debt?
. Our HR consultant in London can assist you if you live in London. Suppose you live further afield thats not an issue! Visit our HR Consultants Near Me page to find the best consultancy nearest to you.
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