Financial stress has been a top stressor for employees for quite some time. In fact, nearly 60% of employees cite finances as their primary stressor. Their financial worries surpass other top stressors, and it’s impacting their job performance. With the addition of COVID-19, financial stress is at an all-time high. The COVID-19 crisis is an additional strain on incomes and causing growing uncertainty.
When employees are worried about whether they or their spouse will be laid off, how they will pay their bills or how they can manage their growing debt, it can have a significant impact on their work. In fact, research conducted before COVID-19 shows financially stressed employees are less productive and more distracted at work. They also have higher rates of absenteeism and presenteeism (at work but not fully functioning). Employees typically spend more than three hours a week dealing with their personal finances at work and they lose nearly a month of productive work time (21-31 days a year) due to financial worries. The recent circumstances likely only exacerbate the situation.
Employers simply can’t afford to ignore employees’ financial stress. Lost productivity due to financial stress costs American businesses $500 billion annually — around 2.5% of the U.S. gross domestic product (GDP).
The good news is that many employees want help dealing with their financial strain — and they appreciate their employer's help.
As an employer, you’re in a unique position to positively impact your employees’ lives by helping them reduce their financial stress. Here are five ways you can help:
When thinking of ways to positively impact your employees' financial and mental health, keep these five strategies in mind. Although financial stress is on the rise, you can play an important role by offering benefits that help your employees improve their financial stability and well-being.
Selecting and implementing the right financial wellness program for your employees can be challenging. We can help you design the appropriate program for reducing your employees’ stress and provide them more financial flexibility. Send us an email or give us a call to learn more.
This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.
Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a registered Broker/Dealer and Investment Advisor, member FINRA/SIPC. LoVasco Consulting Group is independently owned and operated.
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