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Should You Listen to Your Employees on Financial Wellness Issues?

03/10/2016


Recent studies indicate that Canadian debt levels are rising across the country. In fact, research has shown that at one point or other, up to half of all workers experience stress associated with financial problems and that stress can affect their health, family life and job performance.

We understand that financial difficulties are something that most people would prefer not to discuss with their employer, but in the case that creditors actually contact you regarding an employee, you may need to become involved. Wage garnishees, absenteeism and increased pressure can all lead to a negative impact on overall job performance and affect your professional services business.

If one of your employees is experiencing financial difficulty, we can help. All initial consultations are free and there is no obligations whatsoever. During the consultation, we will gather information surrounding the unique financial situation of the individual and with that information we can advise an individual on the merits and consequences of the options which are available to them.

Often when individuals are experiencing financial difficulties, they are afraid to reach out because they think bankruptcy is their only option, which more often than not, this is not the case at all. Sometimes the solution is as simple as helping a family to establish a detailed and manageable budget. At other times, people can qualify for a debt settlement process which, when combined with financial counselling, can help them get back on their feet.

If an individual decides to proceed and file a formal process such as a Consumer Proposal or bankruptcy with us, most debts are stayed from legal action and the employee is then protected from debt collection, including court proceedings and garnishees. In addition, they may be able to either walk away from certain secured debts that have become unmanageable, (such as mortgages and vehicle loans) or keep the secured debt and hold onto important assets such as their residence and vehicles.

We have noticed the level of stress substantially decrease once an individual is aware there is a legally binding, structured plan and that at the end of the process, most of their unsecured debts will be forgiven. From an employer’s perspective, the knowledge that the employee is protected from court, garnishee and other collection action may assist in staff retention as the employee will not entertain the idea of moving from one job to the next to avoid debt collection.

We are committed to helping each individual make fully informed decisions surrounding which debt solutions are best for their personal circumstances as they work towards a fresh financial start. And when individuals are able to regain control of their finances and start working towards their short and long-term goals, workplace productivity – allowing them to actively contribute to the growth of your business. Should you have any questions regarding this information or know someone who could benefit from our assistance, please do not hesitate to refer your employee to contact our offices at any time. We can be reached toll-free at 310-DEBT (3328) or via our website at MNPdebt.ca.

Tim Dawson, CPA, CA can be contacted at 780.453.5354 or [email protected] or Zaki Alam, CIRP, LIT, CPA, CA at 780.969.1489 or [email protected].​