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Financial Stress and Workplace Performance
The correlation between financial stress and workplace performance has been confirmed through multiple studies over the last 10+ years. We know that workers who are stressed out about money cause an increase in absenteeism, loss in productivity, workplace violence, workplace theft, and higher health care costs. It is almost impossible for employees to leave their personal financial issues at home.
The International Foundation of Employee Benefit Plans (IFEBP) report, Financial Education for Today’s Workforce: 2016 Survey Results, revealed that workers are struggling and stressed over:
- Debt (66% of respondents)
- Saving for retirement (60%)
- Saving or paying for children’s education (51%)
- Covering basic living expenses (48%)
- Paying for medical expenses (36%)
Employer-Employee Financial Wellness Program
How big is the problem?
According to the Society of Human Resource Managers (SHRM), 61% of employees experience financial stress and out of that percentage, 1 out of 3 employees will spend company time trying to resolve their financial issues. On average, employees will spend 12 hours per month doing that. It is easy to see how this is impacting your productivity and costing your company money.
Why it is good business to care about the financial concerns of your staff?
Just under half of the Millennial workers (44%) say they want their employer to help them address their financial concerns, a response more than double that of Baby Boomers (20%), according to MetLife’s 14th Annual U.S. Employee Benefit Trends Study, released on April 4.
Millennials make up half of the workforce now, and attracting and retaining them as employees means meeting their needs. It makes sense that an employee looks to their employer for help in addressing their financial concerns — after all, it is where they earn their income, handle taxation, insurance, and investing already. Caring for the financial health of your employees is a cost-effective way to positively impact your employees and your profit.
“Employers and employees agree financial wellness programs are valuable, but personalized help could make them more effective.” In 2018, Bank of America released a Workplace Benefits Report which examines employer and employee thoughts on financial wellness in the workplace. CLICK HERE to read their report.