Benefits February 9, 2004

Pleas for Financial EAP Help Skyrocketing

February 9, 2004 (PLANSPONSOR.com) - In a sign that the slowly recovering economy has apparently still not eased financial burdens for many Americans, a new report found that financial help calls to workplace employee assistance programs (EAP) have skyrocketed.
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According to EAP provider ComPsych Corporation, calls for everything from help with debt, refinancing, and failed investments, among other issues, were up 69% between 2002 and 2003.

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“Unfortunately, employees are grappling with the reality of unchecked spending,” said Richard Chaifetz, chairman and CEO of ComPsych, in a statement. “Couples in particular are dealing with exploding debt as they try to maintain two-income lifestyles, even after one partner is laid off, or is working but underemployed.”

Also, in a survey, employees also reported a disturbing picture of their personal finances. Asked how they would describe their financial situation, employees said:

  • I am one major setback away from financial disaster – 27%
  • I am worse off than last year, with less savings/income and more debt than before – 22%
  • I am about the same as last year, with no change in savings/income or debt – 23%
  • I am better off than last year, with more savings/income and less debt than before – 22%
  • I am in the best financial shape ever, with bountiful reserves and very little debt. – 6%.

The survey was conducted from January 12 to 26, 2004 and covered employees of more than 700 ComPsych client companies nationwide.

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