In all my years of being hanging around with professionals that consider themselves to be financial experts, I’ve never found anyone who could provide a logical explanation for how and why markets move in one direction or another? But it seems that either a general climate of confidence or fear are certainly leading indicators.
For example, it is interesting that the markets pay close attention to a concept that is anything but logical or analytical. It’s called “consumer confidence.” Webster’s dictionary tells us that confidence is “a state of confident hopefulness that events will be favorable.”
As I write this entry, consumer confidence is challenged. In fact, on January 20th, ABC News released its weekly index on consumer confidence in the United States. In the last week, the Consumer Comfort Index fell to -53, from -49 in the previous week. The index ranges from -100 to +100 and its record low is -54, reached in the week to Dec. 1, 2008.
While this may seem like the bleakest of times, the need to communicate confidence to your workers has never been more important. It’s time to find innovative, not necessarily expensive, ways to instill confidence and clarity. With the collapse of Wall Street, plummeting real estate values and the general uncertainty of our economic system, staying focused at work becomes more challenging every day. Especially for those who have nagging questions about money issues and whether or not they will be ok.
In response, many HR and Benefits professionals have integrated leading edge financial wellness programs to help de-stress their employees during these tough times. In fact, a recent survey of employers conducted by the International Foundation of Employee Benefit Plans found that 43% of U.S. respondents offer financial education literacy programs for their workers.
Decisions like these speak to being proactive, playing offense…not just defense. They are decisions that confident HR/Benefits leaders make when the workforce is battle weary and distracted.
In his inaugural address, our new President alluded to such leadership in our first President, George Washington whom he quoted…
“Let it be told to the future world…that in the depth of winter, when nothing but hope and virtue could survive…that the city and the country, alarmed at one common danger, came forth to meet [it].”
