Financial stress on employees can be as great as physical sickness. Many employees admit that they spend several hours each week dealing with financial issues while at work. In fact, it is the No. 1 stressor in their life. Research from John Hancock shows that 72% of workers admit to worrying about their personal finances at work with 33% worrying about it more than once a week. ¹ About 60% of Americans have attested to the fact that Coronavirus has harmed their finances. ³
What do these distractions and worries mean for the bottom line? Financial stress takes a toll on employees’ health—both mentally and physically leading to increased absenteeism and lower productivity or presenteeism. Many also are afraid of dealing with the reality of death and disease. A reduction in employee productivity can lead to significant losses. According to a survey done by Salary Finance, “American businesses are losing $500 billion per year due to employees’ personal financial stress.” John Hancock Retirement tells us that the “loss of productivity combined with absenteeism from financial stress costs employers more than an estimated $1,900 per year, per employee which leads to about $1 million for mid-sized employers and $19 million for large employers.”² This loss has resulted to many employers turning to Financial Wellness Programs and other wellness programs to reduce stress in the workplace.
Financial stress also impacts job performance. Feelings of fatigue and reduced sleep can impact behavior and the ability to focus at work. A survey from Bankrate tells us that “80% of U.S. adults are losing sleep worrying about everyday expenses, saving for retirement and healthcare costs. Sleep deprivation impairs employees’ ability to think and process information.” This also leads to irritability and an inability to communicate effectively.
So, how can Human Resources help their financially stressed employees? Employers are in a position to help employees by offering Financial Wellness Programs to help employees with financial issues they may be embarrassed to discuss at work.¹ The Financial Wellness Programs can help employees measure their financial stress, create a monthly budget, pay down debt and help regain control of their finances. These programs allow employees to confidentially discuss their financial concerns with a professional financial counselor. Many employers have incentivized their wellness programs to increase employee participation in these programs.
With so many people going through the effects of a pandemic, a Financial Wellness program has gone from “nice to have” to “need to have.” Many American businesses depend on the wellness of their employees for growth. Have you implemented a Financial Wellness Program for your employees? If not, United Teletech Financials’ (“UTF”) Wellness Program is free so the return on investment to your organization is tremendous. We can teach your employees how to live a financially healthy life. You will see employee productivity increase, which has a positive effect on physical health and employee engagement.
²Best Money Moves
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