The Impact of Financial Stress on Employee Well-being
BrightPlan Team
In the BrightPlan 2021 Wellness Barometer Survey, we found that finances are a top source of stress among U.S. employees. The American Psychological Association uncovered the same trend among U.S. adults in their Stress in America 2020 survey. As financial stress is directly linked to a decline in health, productivity and engagement, employers and HR leaders have started to take notice.
Why Financially Stressed Employees Perform Poorly At Work
The lines between our personal and professional lives have blurred, particularly over the past year and a half. While your employees may not talk about challenges in their personal lives at work, these issues may still affect their ability to concentrate, meet deadlines, and feel connected to their work. Here are a few ways an employee’s financial stress may affect their job performance:
1. Poor Health
A constant state of stress and anxiety can have serious implications on physical health and overall well-being. This may translate into more sick days and increased healthcare premiums for employers and employees. Financial concerns may also cause employees to forgo preventative or routine healthcare.
2. Increased Absenteeism
When employees are stressed, they’re more likely to call in sick or experience health problems that require them to miss work time. When employees are absent, their responsibilities either go undone or other employees are left to shoulder the workload, potentially resulting in even more widespread stress.
3. Decreased Productivity
When financially stressed employees are physically present at work, they may not be performing to their full capacity. This may lead to a heightened level of distraction, missed deadlines, and increased mistakes. In fact, our survey shows that financially stressed employees lose on average 15.3 hours of productivity each week.
4. Lower Engagement
Happy and healthy employees are more likely to be engaged and perform better than employees who are dealing with personal stressors while at work. Depression, irritability, and anxiety may accompany financial stress and ultimately impact employees’ working relationships and attitudes about their job.
How Can Employers Help
An overwhelming majority—over 80%—of employees look to their employers for financial support, many of which would like guidance on financial education, tools for investing, and access to a financial professional.
HR leaders can target this emerging need by supplementing their total rewards portfolio with financial wellness benefits. Providing your employees with a comprehensive financial wellness program can help fast-track their financial literacy, guide them to financial stability, and demonstrate that you care about their overall well-being. Further, investing in benefits that support holistic well-being shows a culture of care and appreciation. Empowering employees to make healthy choices physically, mentally, and financially leads to happier and more dedicated employees.
