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How can HR help? 60% of workers live paycheck to paycheck

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in Employee Benefits Program,HR Management,Human Resources,Leaders & Managers,Management Training

As the economic downturn trudges on, many workers are struggling with household budgets. HR pros can help by steering staff to financial counseling services available through employee assistance programs and finance professionals.

Six in 10 (61%) workers surveyed by CareerBuilder said they always or usually live paycheck to paycheck just to make ends meet, up from 49% in 2008 and 43% in 2007.

Thirty percent of workers with salaries of $100,000 or more reported that they too live paycheck to paycheck, up from 21% in 2008.

Some workers make ends meet by dipping into their long-term savings. A fifth said they have reduced their 401(k) contributions or personal savings in the past six months to get by. Of employees earning six figures or more, 23% reported they had put less into their 401(k)s and savings accounts.

However, 36% of workers said they don’t contribute to any kind of retirement savings plan, and 33% don’t save any money at all.

How you can help: Contact your EAP (if you have one) to find out about available financial services. Publicize them to your employees.

Consider offering in-house training or brown-bag seminars on money management. Local financial services firms are almost always willing to send a speaker.

Possible topics: setting a household budget, making a savings plan, building a “rainy-day” fund and retirement investing.

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