by John Baldino, President of Humareso
The majority of U.S. Workers live paycheck-to-paycheck. Surprised? Not likely – either you have heard this fact previously or you are one of those in that situation. It’s a hard reality for many. Looking at the money going out of your checking account as quickly as you put it in is demotivating, if not heartbreaking. For as hard as many people work each week, to have so little to show for it is a cycle that does not promote health. “What’s the point?” I have had more than one employee state.
Mainstream economics will say that expenses rise to meet income. Where many people are hopeful that their next raise will alleviate the pressure of finances, a raise usually does very little to do just that. Credit cards and loans have become a mainstay for many households, adding to the debt-related stress for marriages and families. For some, dipping into retirement accounts to borrow against those funds has turned into a 401k operating more like a local savings account. The tax implications as well as the preparedness for retirement make this option detrimental.
For employers, the benefit of financial literacy for staff should be explored. Stressed employees do not perform as well as they could. The pressure of debt affects engagement, communication and overall performance; financial issues can be consuming. Payroll and HR professionals are familiar with the liens and garnishments that are forced-placed upon employees, making paychecks even smaller. And let’s not overlook the pop-up expenses that are unplanned. Car issues, medical emergencies and the like require immediate funds and with most Americans having little to no savings, that can be catastrophic for a household.
Kashable is an option that can be offered to staff without an employer having to be directly involved in the knowledge of debt or need. With the reasonable access to funds, employees can use these monies for the consolidation of debt and emergency needs rather than using any retirement account funds. The option is managed smartly by the team at Kashable and restricts any potential for employees to get in over their heads. Its viability has propelled the organization as a leading resource for this level of need. Further, the access to it is seen as a benefit of employment. This can turn the direction of distracted engagement to one that allows for an open door.
Minimizing the reality that many staff face financially won’t help it go away. Taking the steps to provide education and resources solidifies the relationship between employer and employee. Kashable is a partner in this and can assist an employee in managing immediate needs.
Meet John Baldino
John is President of HR Consulting firm, Humareso, and an SPHR, SHRM-SCP certified professional with 25+ years of HR experience. He delivers keynote addresses across the U.S. and internationally, and was the 2012 Delaware Valley (Philadelphia Metropolitan Area) HR Person of the Year.
Follow John on Twitter: @jbalive
About Kashable
Kashable is a financial wellness benefit that offers low-cost loans to employees across the credit spectrum, providing a reliable tool to pay down expensive debt and cover unexpected expenses. Kashable is an intelligent alternative to 401(k) loans, credit cards, and pay advances during financial emergencies. Kashable only lends what employees can afford to borrow, with loans that are repaid automatically through payroll. Kashable is Socially Responsible Credit™.
Learn more at www.kashable.com.
Media Inquiries: press@kashable.com