Financial stress is a growing concern across many demographics. When employees feel stressed and burned out, it negatively affects their work productivity, which can lead to a loss of revenue for the company. The costs associated with low productivity can be detrimental to a business’ bottom line, but they can also be avoided with the right proactive steps.
Offering financial wellness services as part of your benefits program is one of the most effective ways to help decrease employee financial stress, increase productivity, and steer clear of unnecessary losses in revenue.
Here are a few challenges to financial wellness:
Employee financial stress can negatively impact your business
The Financial Post states that “Employee financial stress is expected to [have] cost companies more than $40 billion in lost productivity in 2022.”.[2] Employees who experience financial stress are far less productive than those who feel confident in their financial situation. This is a heavy cost that affects businesses of all sizes all over the world.
Your employees might be worrying about their personal finances while on the job
According to Graystone Consulting from Morgan Stanley, some employees can spend over hours – or 3 average workweeks – per year distracted from work while worrying about their personal finances, which means some companies are annually paying their employees nearly $4,000 just to stress about money during working hours.[3]
Stressed employees who come to work can cost businesses more than employees who don’t come to work at all
A study from Harvard Business Review shows that $150 billion in productivity was lost in a single year when employees came to work while stressed, which is far greater than costs associated with employees not showing up to work at all.[4] Employees who show up to work financially stressed are unable to perform their duties to the best of their abilities, leading to a higher cost and greater drop in overall productivity.
Solution: Provide your employees with the financial wellness tools they need
Financial stress can have a serious effect not only on productivity, but also on workers’ mental well-being. In a study from Bankrate and Psych Central, 42% of adults in the United States claimed money concerns have had a negative impact on their mental health.[5]
Companies that offer financial wellness benefits have more success with employee retention, satisfaction, and productivity. 90% of employers claim financial wellness benefits have positively impacted their workforce.[6]
Better employee financial wellness means better company performance, which can include:
- Increased employee satisfaction and loyalty
- Heightened engagement at work
- Greater employee productivity and performance [7]
Experian can help achieve financial wellness through comprehensive management, identity protection, and restoration solutions.
Protect your business from the unnecessary costs of loss of productivity. Ease your employees’ financial stress and empower them to produce the best results possible in a supported work environment by offering financial wellness services as part of your employee benefits program.
To learn more, visit our website here.
[1] Morgan Stanley. 2022. Morgan Stanley at Work Unveils Second Annual State of the Workplace Financial Benefits Study. https://www.morganstanley.com/press-releases/second-annual-state-of-the-workplace-financial-benefits-study
[2] Financial Post. 2022. Workers are stressing out over their finances – and it’s costing employers billions. https://financialpost.com/fp-work/worker-financial-stress-employers-cost-billions
[3] Graystone Consulting. 2020. The Real Costs of Employee Financial Stress—and How Employers Can Help. https://graystone.morganstanley.com/the-parks-group/articles/graystone/thought-leadership/financially-stressed-employees
[4] Pathways. 2022. The Costs of Presenteeism and Absenteeism in the Workplace. https://www.pathways.com/pathways-at-work/blog/costs-of-presenteeism-and-absenteeism#:~:text=Presenteeism%20Costs%20More%20Than%20Absenteeism,far%20surpasses%20annual%20absenteeism%20costs
[5] Bankrate. 2022. 42% of U.S. Adults Say That Money Negatively Impacts Their Mental Health. https://www.bankrate.com/personal-finance/financial-wellness-survey
[6] HR Daily Advisor. 2020. Q&A: Identity Theft Benefits More Relevant Than Ever. https://hrdailyadvisor.blr.com/2020/04/02/qa-identity-theft-benefits-more-relevant-than-ever/
[7] Bank of America, 2022 Workplace Benefits Report, August 2022
https://business.bofa.com/content/dam/flagship/workplace-benefits/id20_0901/documents/2022-WBR.pdf
