Do you know how employees’ financial stress affects your bottom line? It’s more than you think.
Many employees under financial stress spend time at work dealing with their personal finances and it impacts their productivity. A whopping 81% of employees say they have financial stress and of those, 46% of employees distracted by their finances spend at least 3 hours each work week dealing with personal financial issues. This takes them away from their work responsibilities and impacts not only their performance, but also impacts the companies’ overall productivity.
Employees miss time from work dealing with their personal finances. When team members aren’t at work, their work doesn’t get done or it adds to the workload of another employee. This means falling short of production goals or stretching resources thin by asking other employees to cover potentially resulting in even more widespread stress. Financial stresses have resulted in a 34% increase in absenteeism and tardiness, according to SHRM. And one study from the Center for Retirement Research at Boston College found that financially stressed employees miss almost twice as many days each year compared to their unstressed counterparts.
A well-rounded financial wellness program has three critical components to incorporate when addressing financial wellness in the workplace: Education; Behavior Change; and Investments & Retirement.
A financial wellness program benefits both your company and your employees.
Three of the many benefits include:
- Increased Productivity without increasing payroll
- Improved employee engagement
- Increased employee morale
Do employees really want their employers to help with their personal finances? A Purchasing Power report indicates 62% of full time employees said they would take advantage of financial wellness education. 43% want budgeting help and 33% want debt reduction help. Additionally, MetLife's 9th Annual Employee Benefit Trends Study indicates employees voice an interest in seeking advice, counsel, and guidance from their employers regarding their financial problems. Employees tend to report that they have an increased confidence in their ability to make better money management decisions and cope with their financial stress after receiving financial education.
Does your organization have a financial wellness program in place?
© Carl Lander
Financial Wellness Speaker, Trainer, and Author
Carl works with organizations that want to equip employees with financial peace of mind so they are more productive and engaged.