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20 www.ohiorestaurant.org Spring Issue

No one in the restaurant industry is unaware of the fact that the recent economic climate has impacted their customers’ dining habits. More and more consumers purchase based on how far their dollar stretches than ever before. But, this isn’t just a front-of-the-house problem for many restaurants.

According to PriceWaterhouseCoopers, LLP, (PwC) US’s 2011 Financial Wellness Survey, 49 percent of employed adults in the U.S. are challenged to pay their household bills on time. This fgure has ticked upward from 2010 when 43 percent of those surveyed indicated that this was a problem.

Additionally, those using access to credit to pay for necessities has ballooned to 24 percent this year – a nine-point climb since the survey was conducted in 2010. The survey, which was done amongst 1,610 adults earning at least $30,000 annually, found that 50 percent of respondents said they consistently carry balances on credit cards. Forty two percent noted that they are often hard-pressed to make minimum credit card payments on time, up substantially from the 28 percent who indicated this was a problem in 2010.

Given these cash and debt management challenges, it’s no surprise that 61 percent of those surveyed said that they fnd dealing with their fnancial situation stressful. Gone are the days when employees spent a fraction of their pay and banked the rest in order to protect themselves from unexpected expenses or to plan for their retirement. In fact, of those surveyed, 18 percent, or approximately 290 individuals, said that they doubt they will be able to retire after completing 30 years in the workforce.

“It’s not enough to say, ‘you should be saving for retirement’ and auto-enroll your employees in a retirement program,” said Kent Allison, a partner in PwC’s Financial Education Practice. “Competing fnancial issues could be preventing employees from saving for retirement, and it’s important to understand why people aren’t saving in order to address the

retirement savings crisis and related workforce issues. In addition to having an impact on employees personally, delayed retirement and concern over one’s fnancial situation can have signifcant, far-reaching impacts on companies and their workforces, including succession planning, productivity, healthcare costs, and appreciation for benefts packages.”

How does this affect your staff?

When employees are conficted about money matters, they are often distracted at work; or they suffer from a higher rate of absenteeism as long-term effects of stress can weaken people’s immune systems and they become more susceptible to illness. Additionally, employees worried about money are more prone to making errors on the job because they are physically exhausted from missing sleep as they fnd themselves tossing and turning at night worrying about their fnances.

“It may seem that a small number of respondents let fnancial issues affect their performance at work, [but] these ‘lost hours’ can really add up and have a signifcant impact on an employer’s bottom line,” Allison added. “Increased stress levels may also lead to higher healthcare costs and impact morale. Empowering employees with the information they need to become fnancially successful will result in a more engaged, stable and healthy workforce, while potentially allowing employers to cut ineffective, costly programs.”

What can you do to reduce your staff’s fnancial worries?

ORA members seeking insight on ways to retain their staff members and reduce their fnancial concerns can get assistance from BMI Federal Credit Union (BMI FCU). In fact, regardless of where in Ohio you operate your business, BMI FCU allows any ORA member, their staff, their immediate family or household members sharing living expenses to become a member of the credit union. As an ORA member, you can offer this without any cost to your company or to your employees. Additionally, there is no administration on your end whatsoever to manage.

BMI FCU also provides its members with access to many educational tools that can help you or your staff make better informed fnancial decisions. The credit union’s Anytime Adviser Online Coaches will assist members in making good fnancial decisions; they also are available to assist in either English or Spanish.

In addition to these offerings, BMI FCU also provides its members with access to more than 30,000 no-surcharge ATMs across the county, including those located within 7-11s. BMI FCU account holders also receive unlimited free ATM/debit transactions. The credit union also offers access to free online bill paying options, complimentary home banking and no-fee checking account access. For many restaurant workers who can’t get approval from banks for checking or savings accounts, this is a very nice employment beneft that your company can provide them.

Do you have many young workers in your operations? For your college student staff and staff with college-aged children or grandchildren, BMI FCU also offers private student loans to help fll the gap that federal loans do not cover.

To join BMI FCU, you can apply online at http://www.bmifcu.org/. You will have to verify your membership in the ORA prior to being approved. You can do this by providing BMI FCU with either a 2010 or 2011 ORA newsletter or your ORA I.D. The credit union will also need to see your driver’s license – a standard procedure for any fnancial institution. To fnd out how to provide this free, non-binding offer to your staff, contact Sarah Borland at s_borland@bmifcu.org. Once you are an established ORA member, you are eligible to apply for a loan or enjoy any of the credit union’s products and services. If you have any questions about this member beneft, contact BMI FCU at 1-800-233-6880.