‘Financial & Legal’ Category
Friday, January 8th, 2010
By Valerie S. Nosek, Ease@Work EAP Coordinator
As a business owner, manager or human resource (HR) professional, have you noticed a rise in employee use of sick time? Or, have you seen an increase in employees and their family members using health care benefits? Has there been a spike in employees accessing your employee assistance program (EAP) benefit?
If so, you’re not alone. According to a report published by the Associated Press, “Growing worker stress reflected in benefits use, Watson Wyatt survey says,” more and more employees are calling in sick and using their health-related benefits.
Not surprising during a down economy, said Shelly Wolff, a representative with Watson Wyatt. “Wolff said sick day increases are often tied to job stress, which can trigger health problems. Companies that cut jobs frequently heap more work on remaining workers.”
The Watson Wyatt survey supports Wolff’s conclusions, with 78 percent of those surveyed saying that “excessive work hours” were a leading cause of stress for them.
As for increased health care usage, the cause may be two-fold. One: job stress can trigger or exacerbate health problems, resulting in a need for professional medical care. Two: the employee may feel that they and their dependents need to use their healthcare benefits while they still have them. (I know I have personally heard employees say they were going to have some procedure done that they had been putting off, just because they were uncertain about the security of their job and wanted to make sure they had their medical issues taken care of before a possible reduction in force.)
Sometimes a lay-off or reduction-in-force is the only fiscally responsible decision for an organization. Most of the time, the focus is on the employee being laid off or terminated – after all, their world is being turned upside down. But after the dust settles, what happens to the employees who are left behind?
Managers and HR professionals need to be tuned-in to recognizing signs of employee stress after a major change to the work environment. While organization leaders are not expected to be mental health professionals, they should have access to expert advice. Managers and HR can call their EAP at any time for a management consultation if they want help with dealing with a stressed-out employee. The EAP should also provide onsite management training for dealing with behavior issues.
Understand that any type of relevant change may cause a grief-reaction in employees. Change can be painful and disruptive and there can be an element of loss for “what was.”
- Employees may be in denial – “I can’t believe this is happening.”
- They may resist change – “They don’t know what they’re doing.”
- They may think or say – “I was fine with the way things were before, so I’m just going to keep doing things that way.”
Employers should also recognize many employees experience emotional issues with major changes at work, home or when combined. Management can help employees move through adjustment phases and return to high levels of productivity more quickly if they help employees navigate the process. This may mean acknowledgement of the feelings and grief they may be experiencing.
Asking your EAP to conduct an on-site debriefing may be appropriate if you have a lay-off or staff reduction situation. This on-site program can help both those leaving and the employees who remain. And, while it may be more obvious as to why this type of session can help those being laid-off, what management often forgets is that those who remain to do the work also have emotional reactions that impact productivity the workplace – they may feel guilty about having a job when a long-time co-worker and friend is no longer there, they may feel stressed by having additional responsibilities, they may worry that their position is next to be cut.
Your EAP can also provide other seminars to assist employees negotiate through times of change, whether your concern is based in changes employees may be experiencing in the workplace or at home. Seminars on change management topics may be helpful, as may a seminar about managing stress or on a motivational topic such as how to rediscover passion for your work or optimism.
Tags: benefit utilization, excessive work hours, health benefits use, health benefits utilization, health insurance utilization, job stress, sick days, sick leave, sick time, stress, worker stress
Posted in Financial & Legal, Health & Wellness, Mental Health | Comments Off
Tuesday, November 24th, 2009
Watching Out for Your Financial Wellness
By Valerie S. Nosek, Ease@Work EAP Coordinator
Individuals and businesses alike have felt the sting of the current economy and are struggling to meet their budgets and expenses. And, as a result of a tighter grip on every dollar, everyone is trying to limit spending – or at least make the smartest spending choices.
It’s no surprise retailers are feeling the pressure, too. After all, less disposable income means people will think twice about making a purchase. Still, with the holidays just around the corner, retailers are gearing up to get into “the black” for 2009. The sales circulars are readied with out of this world deals, and they’re all vying for your hard-earned dollars.
But watch out! Some deals may be just too good to be true.
Sure, you may get excited about seeing that 40-inch LCD HDTV on sale at the big box store around the corner for that incredibly low, low price – heck, they’re practically giving them away…but are they? Read the fine print.
What you will find is most of the great priced ads this season will have extreme limitations. For example, the store with the cheap televisions may only have one or two in stock and once they’re gone, they’re gone. No getting it from another store, no back-ordering at that price, no rainchecks.
And, if you are lucky enough to get a raincheck, that doesn’t mean you will ever see the item you wanted to purchase. According to an article at CNN.Money, “Dirty Secrets of Black Friday ‘Doorbusters,’” often stores will never have the same item (same model number) in stock again, making your raincheck useless.
Another thing to watch for in those super sales are “derivative models.” These are items that look like the standard model, but really have lesser features if examined closely. Most consumers don’t even know they’re buying a scaled-down model, unless they’ve carefully compared model numbers and product options.
So, what’s up with the sales this year?
The ads can’t be considered deceptive because the limitations are clearly spelled out – even if in small print. What the stores are banking on is that once the customer has waited in line and is in the doors, they’re going to shop there, even if the particular item they wanted isn’t there. It’s at this point that consumers will need to exercise “critical shopping” skills to discern between what’s really a bargain and what’s not. Another store may have the same item for a better price.
Managing Your Money Today…and Tomorrow
In reality, we all should be exercising our “critical shopping” skills on a regular basis, not just during the holidays. Keeping budgets in check is a 24/7, 365-day process that builds and compounds as the months and years go along.
As a good example of how managing money is not a one-time or hit-and-miss task, just think about the 401K savings process where it’s all about regular contributions, compounding funds overtime to build a retirement nest egg. Conversely, consider the downward spiral of how easy it is to get into “a world of hurt” caused by mismanaging credit and missing crucial payments.
Financial problems have a way of sneaking out of the wallet and infiltrating other parts of people’s lives. Couples can have marital or relationship problems about money and spending; financial stress keeps people up at night and causes physical symptoms, such as migraines, ulcers or worse; anxiety about bill collectors calling may cause a good employee’s performance to decline.
This holiday season, don’t get caught up in gifting pressures. Know your budget and stick to it. You may even want to participate in Buy Nothing Day 2009. Make it a priority not to go into the new year with a spending hangover.
We understand the link between employee financial wellness and productivity in the workplace. Ease@Work offers organizations and their employees the mental health benefits associated with an employee assistance program (EAP) along with financial and legal consultation services.
Tags: black friday, budgeting, eap and financial wellness, finances and health, financial counseling, financial wellness, holiday sales, holiday spending
Posted in Financial & Legal | Comments Off
Friday, October 23rd, 2009
What to say to your insurer…and what not to say!
By Valerie S. Nosek
You’ve been in a car accident, you’re receiving a new medical treatment, or perhaps you’ve had a water leak in your home. The common factor is that now you’re involved with filing an insurance claim. But did you know that what you say or how you explain an incident can impact whether a claim is processed quickly or is denied?
A recent article at MSN Money, “5 Things Never to Tell Your Insurer,” highlighted five things everyone should be aware of when speaking with an insurance company. “When making an insurance claim, what you say can mean the difference between a fast payment check and a nightmarish process. Insurance companies are sensitive to certain words, and using them incorrectly could result in a claim delay or even denial,” the article said.
Of course, one should never lie or mislead an insurance carrier. Lying or misrepresenting the facts is considered fraud. Instead, use words that accurately describe your situation.
Here’s what to watch out for:
- Flood – Don’t use the word “flood” inappropriately. If the water line to your washer bursts and you don’t realize this until you’re up to your knees in water, that’s NOT a “flood.” Be aware that when an insurance company thinks of a “flood,” they think of water from a lake, river or other body of water…a true flood is not covered by insurance unless you specifically have flood insurance. So, be careful how you describe an incident of water damage in your home.
- Experimental – “Avoid using terms like ‘experimental,’ ‘investigational,’ or ‘clinical trial’ when you need a medical treatment that isn’t common practice,” said the article. Health insurance companies will typically deny treatments that fall into those categories. Always refer to required treatments as “medically necessary.”
- In my opinion – Quite simply, don’t offer your opinion. As Joe Friday from Dragnet would say, “Just the facts, Ma’am!” A common example of this type of mistake is when an accident occurs, the person involved will estimate rate of speed, distance etc. Don’t do it. “If your estimates of such things are wrong, they could be used against you,” said one expert quoted in the MSN article. This same person reported cases where clients were found “at fault” because of the information they provided. But be prepared for an insurance adjuster to try to get you to make these estimates. They will ask you the same questions a number of different ways – stay away from making “guesstimates.” Unless you were looking at the speedometer when the accident happened or you had a tape measure to record the distance between cars, you can’t accurately provide that information.
- Sorry - In the case of an accident, avoid saying “I’m sorry” because that can be interpreted as an admission of guilt, even though you were just trying to be nice. Also avoid saying “It’s my fault,” or “It’s not your fault.” Don’t interpret the situation or theorize about what happened, why it happened, or who’s at fault. Describe what happened factually and to the best of your ability, but let the insurance companies figure it out. Also, ask your insurance company if you should talk to the other party’s insurance if they call you. Some insurers will want to deal directly with the other company. Don’t allow a recorded statement unless you’ve gotten the OK from your insurer.
- Whiplash – The article warned that insurance companies often associate the term “whiplash” with exaggerated or fradulent claims, so avoid using that description. Always refer to your injuries in medical terms or wait until you receive a diagnosis from your doctor.
Some other tips of what not to do after a car accident included:
- Don’t make friendly conversation with adjusters. Stick to business – who, what, when and where – don’t even tell them the “how” it happened.
- Don’t give out information about your family members.
- Don’t give out the names of your doctors.
- Don’t sign a medical release. Medical records are protected, but if you sign a release, the insurance company may comb through all of your medical history, even reviewing care not related to the accident.
One of my duties as the EAP Coordinator for Ease@Work is to research and write informative articles related to our employee assistance program services for our bi-monthly Employee and Frontline Advisor newsletters. In preparing for the upcoming newsletters, I recently came across “5 Things Never to Tell Your Insurer” at MSN Money and thought this information would also serve our blog readers well. If you receive our Ease newsletters, you’ll find the related article in the News You Can Use section of the Jan/Feb 2010 issue.
Tags: auto insurance, car accidents, home owner's insurance, insurance claims
Posted in Financial & Legal | Comments Off
Wednesday, August 26th, 2009
The latest victim of the economic recession could be your health. According to a recent AARP survey, Impact of Economy on Health Behaviors, one in five adults ages 45 and older are suffering health problems due to financial stress. The survey details the health care problems and challenges many Americans are facing because of the current economic situation.
“Right now people are increasingly concerned about their jobs, retirement savings and simply being able to provide for their families and it’s taking a major toll on their health,” said Bob Gallo, AARP Illinois Senior State Director. “It’s a harsh irony that worrying about being able to afford health care is actually causing health problems.”
Key findings from the AARP survey include:
- 20 percent of people 45 and older reported health problems due to financial stress.
- About one fifth, 22 percent, have delayed seeing a doctor due to cost.
- 16 percent had to use retirement savings or other savings to pay for medical care.
- 21 percent have cut back on other expenses in order to afford their medical care.
- One in six, 16 percent, are not confident they will be able to afford health care this year.
The survey also found that health problems due to financial stress is having a greater affect on individuals 45-54 and 55-64, than on those ages 65 and older (22 percent and 25 percent vs. 13 percent, respectively).
Insurance Premiums on the Rise
Mounting health care costs are contributing to the financial woes felt by many. Over the last five years health insurance premiums for families have increased by 65 percent. The average cost of health insurance for an American family now exceeds the yearly income of a minimum wage worker. According to the Kaiser Family Foundation, insurance premiums have increased 119 percent from 1999 to 2008, while workers’ earnings have risen just 29 percent.
With increasing premiums and deductibles, preventative care is more important than ever. Staying healthy is one way of keeping dollars spent on medical care in check.
Ease@Work can help your organization develop an employee wellness plan and we can help you in promoting existing wellness initiatives. In addition to traditional EAP services, Ease offers nutritional coaching, legal and financial consultation and resources to employees – giving individuals a full compliment of employee assistance services for better health and well-being.
Tags: financial health, financial stress, health and wellness, wellness initiatives
Posted in Financial & Legal, Health & Wellness, Mental Health | Comments Off
Tuesday, July 28th, 2009
If you were experiencing frequent migraines or dizzy spells, you would seek medical help. When we notice symptoms of a physical problem, most of us don’t hesitate to see a doctor, undergo tests and start treatment.
When financial health is suffering, however, most people generally hesitate to seek help, even though current research shows that financial stress significantly can affect physical – and emotional – well-being.
For example, one study conducted by four professors, “Negative Health Effects of Financial Stress,” found the following:
- More than half of respondents (51%) reported moderate financial stress
- 23% reported severe stress
- 12% were experiencing overwhelming financial stress
Although nearly one-quarter (23%) of respondents earned above $50,000.
In addition, the same study showed 82.5% of the sample said financial stress was affecting their health, citing ailments including depression, headaches, insomnia, digestive problems, high blood pressure and appetite disorders.
But often, people don’t realize that their physical problems are caused by stress from financial issues.
Integrated Treatment
With financial and physical/emotional health clearly linked, treating problems in both areas should be linked as well.
There are employee assistance programs to assist you with mental and behavioral health issues, and a trained counselor can help you untangle a complex web of emotions regarding money and spending and point ways to ease the emotional and physical manifestations of financial stress.
Receiving financial counseling can be just as important.
A good financial counselor will be credentialed and have years of experience with all kinds of financial situations. An experienced financial counselor can also help you take an honest look at a particular situation in order to figure out the causes of financial problems.
Some financial problems are situational, such as a divorce, a death in the family, unexpected health care expenses, job loss or identity theft. Others are behavioral, meaning they are rooted in other problems and require a change in thinking and action to fix the problem.
Many are a combination of both that feed on one another, such as a layoff leading to inappropriate use of credit and unhealthy coping behaviors, such as excessive eating or drinking – yet another reason to combine your employee assistance services with financial counseling.
Effective financial counseling can help you sort through your financial situations and coach you toward making better day-to-day choices — which leads to long-term financial health.
Research by Virginia Tech personal finance professor Thomas Garman shows that employees who take advantage of financial counseling get results: 75% reported making better financial decisions; 56% said their financial situation improved.
Using both a behavioral/mental health counselor and a financial counselor can save you from financial, physical or emotional crisis, improving your overall health, happiness and productivity.
The employee assistance program offered by Ease@Work assists employees with financial issues by providing a 60 minute consultation with a credentialed financial specialist as well as a variety of online information and resources. Employees may use a combination of counseling and our financial resources to get them back on the road to financial health and peace of mind.
Tags: budgeting, financial coaching, financial counseling, financial health, financial stress
Posted in Financial & Legal, Health & Wellness, Mental Health | 1 Comment »
Tuesday, July 28th, 2009
Talk to any “Jane” or “Joe” on the street and chances are they’ll be in agreement that money’s tight and they’re feeling financially strained. In the words of one university’s report, “There’s hardly a family that will escape the steadily growing financial crisis that is gripping much of our nation.”
Children have concerns about the current financial situation, too. They hear scary words on the news such as ‘foreclosure‘ or ‘depression‘ . Many wonder why the grown up people on the news are crying - maybe they’ve lost a home or their job. Or, perhaps something kids can relate to even more…imagine the fear a child may have when they see someone who has had to give up a beloved pet because of a move. And, while some younger children may not understand news reports, they do notice when parents are uneasy about spending or finances.
Now is the time to begin talking to your children about what is happening out in the financial world and how it might impact your family.
Parents who are open and honest, without resorting to fearful dialogue, can instill a sense of security in children by openly talking about the situation. If there’s an honest dialogue about how the whole family can help out, you might be surprised at how willing your children are to making adjustments. Having a family meeting is a good way to get everyone involved in a discussion about financial health.
Explaining the Facts
Don’t share your fears. Make sure you are calm and comfortable before you open any serious discussion about money. Rehearse what you’ll say and ease your own worries beforehand by talking with a friend.
Be consistent. Emphasize familiarity, continuity and the comfort of simple routines. This will reassure everyone that some things still remain within your control.
Be heard, not overheard. No matter how big or small your financial problems, don’t discuss the painful details unless you are certain your children are out of earshot.
Identify what matters. Don’t hide any concrete changes that might disrupt your kids’ lives — changing schools, having to move to a smaller house — but assure them that as a family you will make the most of it.
Give them some power. Challenge your children to help you find ways to save more or budget better. Let them have a voice about which things the family can cut back on.
Disconnect. Turn the TV off; constantly exposing children to hyped-up headlines and downbeat news is bad for the psyche.
- Sources of information above include The University of Wisconsin Extension-Pepin County and www.kiplinger.com .
An Ease@Work Childcare specialist can help employees to prepare for a conversation with children and can also help in a practical way by exploring less expensive childcare options. A free financial consultation can help with budgeting suggestions, credit consolidation advice, mortgage refinance advice and in many other ways.
Tags: childcare, family finances, financial health, financial stress
Posted in Childcare & School Age Services, Family Dependent Care, Financial & Legal, Work-Life | Comments Off
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