In a recession, it might be the case that employees may be experiencing financial difficulties, they may not arise from employment but other factors outside the employer’s control (e.g. the employee’s partner has lost their job). Although there is no legal obligation to help employees in financial difficulties, it may be in the company’s interest to do so. Here are some ideas for ways in which employers can assist.

Counselling

Some employers have Employee Assistance Programmes (EAP) which provide counselling to employees on a confidential basis, these can be suggested to employees when the situation arises. They aren’t specialists in Debt counselling but would have access to specialists in the field. Be careful however, it is not enough just to offer a stressed out employee the number to a helpline - there are cases where this has been found to be a breach of the duty of care. Investigate further and see if there are more ways in which they can be supported from work.

Debt counselling

More specific than just counselling and more available to employers without EAP schemes - the Citizen’s Advice Bureau give debt advice to individuals and also the Charity CCCS. Make it clear that it is a third party and the employer is not responsible for the advice provided.

Loans and salary advances

Typically, this is what employees first come and ask for and in a recession there would be an increased demand. If the company doesn’t have a loan scheme, one can be put into place temporarily. It is important to set out the rules, and document the loans or advances clearly with written agreements on repayment via deductions from future salary. Also make it clear that outstanding amounts will be deducted form final salaries.

Time off work

This is a gesture of goodwill, in some cases, employees will want time off to visit bank managers, search for alternative accommodation if their home is at risk of repossession. These requests are granted at discretion and on an informal basis. However, if there is an increase in requests, it may be the case that the company needs to make a formal decision on how such requests are dealt with

Flexible working

There might be an increase in requests for Flexible working (employees with children up to the age of 16 or responsibilities for caring for adults, who have at least 26 weeks service). These have to be considered carefully and fairly - it would be best to seek further advice if you don’t have a policy relating to Flexible working that you can follow.

Overtime Requests

Although Overtime is probably reduced, there will be increased requests, it could be tempting to give some people priority over others but care must be taken not to discriminate. Always consider ways of ensuring that the opportunity to work is fairly allocated, even those with financial difficulties will have to compete on an equal footing with other employees.

The Work Foundation has announced that it will be examining the future of HR, looking at:

- Who and what HR can uniquely champion.
- The role HR plays in levels of risk aversion, professional judgement and accountability in the organisation.
- Employee engagement where alignment of objectives and motivation cannot be taken for granted so that this tension drives innovation, diversity and positive energy.
- Future trends in the economy, the workforce and the workplace within which HR operate.

Thank you The Work Foundation! I will be watching the progression and final outcome with great interest. What does HR produce? Has it been the case that HR has hidden behind the intangibility of people management? I have always though this to be an excuse, although direct impact is sometimes difficult to measure we can measure preceived indirect benefits and absolutes like reductions in employee turnover, absence, recruitment costs etc.

Is there also a propensity hide behind the need for process and procedures, generally driven by legislation, but occasionally over-engineered for political correctness and to feel that HR controls the process rather than management?

In regard to engagement, I seem to get a different and vague response about what “engagement” actually is from almost every HR practioner I meet, I will be interested in their results in that respect.

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