Pay Day Loans and Your Staff

An interesting article in People Management about helping staff to avoid pay day loans and manage debt problems. Some big employers have come up with effective means of doing so, but there is no reason why smaller employers cannot do the same.

There is a fine line to tread, since staff may not be prepared to admit to a problem, particularly in a firm without a separate HR department. It is, however, possible to make generally available details af debt advice services, resources on budgeting and so on. For the firm itself to provide a loan can lead to all kinds of problems.

Financial worry can reduce the standard of work. One factor that the article does not mention is the danger that anyone with pressing financial problems may be more tempted by dishonesty (obviously most will not be). Particularly with a firm that holds client money (such as solicitors) it makes sense for the firm to minimise that risk.