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Feb05

Employee asking manager to lend them money

I am a manager and I am new to the job, one month in, and an employee asked me if I could lend them 40 dollars until next payday. What can I do to help this ? This is only 4 days after payday. This person has new baby and 8 other young children. What would be the right thing to do legally, morally, and ethically? Thank you,
Torn

This is a difficult situation for anyone since most people have a genuine desire to help each other. It’s rarely, if ever, a good idea to loan money to co-workers, especially one you supervise, for many reasons. She could not pay you back then things will become awkward. Once you’ve opened the door for one loan she may continue to ask you for more. Most importantly, managers must maintain professional relationships with their supervisees. Loaning money to a worker you supervise will cross those boundaries and potentially cause an uncomfortable work environment.

Many companies have a no solicitation policy which often includes the prohibition of employees requesting money from other employees. If your company has such a policy, you can inform the employee of the policy and that it’s your obligation as a manager to adhere to it. Many companies also offer pay advances. Hopefully, a pay advance is an option and you can refer her to the necessary procedure. If neither is an option, politely explain to her that it would be unprofessional of you as her manager to loan her money.

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This entry was posted on Wednesday, February 5th, 2014 at 8:52 pm and is filed under
Workplace Management.
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