What can the employer do when an employee has financial problems?

Four out of five employers deal with employees who have financial problems. The willingness of employers to help their employees is great, but often they are not aware of the problems until it is (too) late. And that is not only problematic for the employee, but also for the organization, because absenteeism is lurking. How do we prevent these financial problems? And to what extent does that responsibility lie with the employer? In our latest Anders Denken Podcast, entrepreneur Annemarie van Gaal provides answers.

Annemarie van Gaal is an entrepreneur at heart. In the late 1980s, she moved to Russia to set up the country's largest independent publishing company. In 2000, Van Gaal sold her stake in Independent Media and moved back to the Netherlands. Here she runs several companies in the media, retail and real estate sectors, among others.

Cost: 13000 euros per year

In times of inflation and high energy prices, budget coaching seems like the holy grail. Yet that by no means solves all employees' financial problems, says Van Gaal. "Of course, people can only work on their financial problems when they gain insight into them. But what we overlook is that by then it is often too late. If someone is deep in financial trouble, you really have to take them by the hand and make sure, step by step, that they get back into the black." Van Gaal's advice? "Make sure your employee doesn't get into financial trouble, because as soon as that happens, absenteeism lurks. The employee suffers from stress and takes that to work. Nibud research even shows that one employee with financial problems costs an employer 13,000 euros per year. You want to prevent that!"

Let your employees think with you

In short, prevention is better than cure, but where do you start? "With creating a safe environment. Let your employees know they can come to you with their problems. And create awareness. Explain to your employees what it does to them and the organization when they get into the red. And so how nice it is to stay in the black. Of course, that's not just your responsibility. Therefore, let your employees think with you. Imagine, you want to cut lease car costs. Share that problem statement with your employees and let them think along in sustainable and affordable solutions, such as shared scooters, for example."

According to Van Gaal, when you express your confidence in your employees, it translates into better results. How?

Listen to the Different Thinking Podcast!

There is always a solution

Unfortunately, strict laws and regulations often limit Dutch employers from offering proactive solutions, Van Gaal believes. "Surely it would be wonderful if an employer was allowed to take over an employee's account in exchange for unpaid hours. Unfortunately, that is seen as a donation and you pay tax on that. Another example: our benefits. Of course we have to take care of our people, but now people on disability benefits often don't take a promotion or salary increase because their safety net would be gone. That takes away people's own responsibility. Fortunately, I learned one very important lesson in Russia: no matter how crazy the law, or how rigid the rule seems, there is always a solution. As the enterprising Netherlands, let's think about that together."

Want to learn more about the impact and prevention of employee financial problems?

Listen to the Different Thinking Podcast!