Social Question

SQUEEKY2's avatar

Are employers uncomfortable, with employees that are totally debt free?

Asked by SQUEEKY2 (19398points) July 30th, 2015

I get the feeling that most employers like their employees to be in debt, and desperate for a pay check.
It gives them that edge to hold over the employee.
What is your opinion on this subject?

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18 Answers

Blueroses's avatar

I think that’s an interesting question. It probably depends on the level of the job.

If you were an employer hiring for shift-work (let’s say it’s production-line for $14/hr), how would you choose between these applicants, with all qualifications being equal?
1) Stay at home mom with a college degree, looking to get back into the work force
2) Laid-off CEO looking for anything to get the utilities paid since he blew everything on worthless stock.
3) 19 year old highschool dropout with an infant to support.

Yep. I’d go for the one who “needs” me. Waste resources training somebody to get the confidence to leave? I don’t think so.

stanleybmanly's avatar

It seems to me that other qualifications would have priority, depending on the job. And then there’s nothing like crippling debt to push some poor soul toward thoughts of embezzlement.

JLeslie's avatar

My boss (he is the owner of the company) thinks his employees who are desperate for a check each week are idiots and annoying, especially the ones who make a lot of money. At the same time I think he is sometimes frustrated that could easily walk away from my job, because the money is not necessary for me to live. Although, the truth is I am less committed to the job, because he doesn’t pay me enough; I don’t think he realized that. I am friends with him and his wife now so I do very much care about doing a good job and care about his business, but I kind of waltz in when I feel like it and don’t ask for vacation, I tell him when I’ll be gone. If I made 40%+ more I would treat it like a real job. I haven’t made this little hourly since I was in my very early 20’s.

DoNotKnow's avatar

I would imagine the opposite. This is why some employers run credit checks, although I don’t agree with the process.

Tropical_Willie's avatar

I have worked in several different parts of the USA for many bosses. But the managers or supervisor that were retired Armed Services Officers, had no use for employees that were living from paycheck to paycheck. One even advised an employee to seek money management classes. That employee asked me if that seem appropriate, I agrred with the boss.

ARE_you_kidding_me's avatar

Being out of debt and being in the KMA club are two different scenarios. Most jobs with things like security clearances will basically require folks to be in decent shape financially, off the record of course. Kinda hard to trust folks who are having money troubles. It’s in the employers benefit to have employees home lives on track so they don’t drag that into the workplace.

Being in the KMA club is different. Having enough money to leave and not come back going to be undesirable.

ibstubro's avatar

I have never carried significant debt, and I’ve never seen that an employer gave a rat’s rump.

Debt has nothing to do with your work ethic. When I was totally debt free with a 6 figure 401K and a sizable bank account, I was still always available for OT.
Same work + more money = I’m there.

Inara27's avatar

It seems to be a mixed bag. On one hand, they want reliable employees and managing your finances properly is one indication that you are responsible and reliable. On the other, if you are highly skilled (especially if they have trained you), they do not want you to be too mobile in your employment. Other things can make you less mobile besides debt, like family. If the employer is really smart – they will make the workplace one that you like to be in, with good benefits and demonstrate that they appreciate their workers. The not-so-smart ones who treat their employees as replaceable should not expect much loyalty in return.

Dutchess_III's avatar

…I’m pretty sure none of my employers had the faintest clue as to my financial status….

stanleybmanly's avatar

Another reason to go with a civil service job.

janbb's avatar

I don’t think one’s debt is a major issue. It is attitude, responsibly and competence on the job.

Pied_Pfeffer's avatar

I worked for a US-based national company, and credit checks weren’t done. If the employee (meaning someone already hired) was issued a company American Express credit card, AX did the credit check. Only once was an employee of mine set with a limit of $1000 due to her credit rating. It took getting a senior VP’s approval in order to increase the limit.

She turned out to be a bad choice for many reasons, but her financial status wouldn’t prevent me from hiring someone in a similar circumstance.

@Blueroses Aren’t you in the US? How would a hiring manager find out some of that information about applicants unless they voluntarily shared it? Even if they did, I’d still choose the right candidate based upon skill set, references, proven ability, feedback from co-workers involved in the hiring process and gut instinct.

JLeslie's avatar

^^The employer would know if a woman hadn’t worked in a long time, because usually applicant fill out an application, but not that she was a mom, that would be illegal to ask her.

The employer would also know someone was a high school drop out, but not that the person had a kid.

The CEO thing probably can be omitted in an effort to “dumb down” (for lack of a better term) their resume, but then they might be asked about what they were doing all those years.

Pied_Pfeffer's avatar

@JLeslie If that was directed at me, yeah, I understand how that information shows up on a resume. It’s why I said “some of the information.” Unless it is voluntarily provided during the interview process, I have no clue about a candidate’s marital status, whether they have a child or not, what their financial status is, etc.

jca's avatar

@stanleybmanly: I don’t understand what you mean about a civil service job.

ibstubro's avatar

Credit check is quickly becoming a requirement for a new hire.

As you might guess, I heard some discussion of this on NPR recently.

Judi's avatar

I think it depends on the employer. I have known employers like that. They also tend to manage by intimidation.
I also know employers who want the best for the people who work for them and want to help empower them to be as personally successful as possible.

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