40% of Employees report they have financial stress. How does this affect business profits?
Many employers may be surprised to hear that one of the biggest issues employees have is not job security, deadlines or a co-worker but their own personal financial stress. The problem affects 4 in 10 workers and commonly distracts them every week from their job at hand.
From a recent study, employees admitted they are commonly spending a few hours a week on average during work time either dealing with or worrying about financial troubles. This not only affects the efficiency of a business day to day when workers are distracted, but also the ongoing productivity as workers miss more time due to illness that is stress related.
Survey results (from a study by Purchasing Power) show that nearly half of respondents indicate they are better off financially than they were a year ago. However, they still have at least a fair amount of financial stress and don’t have at least $2,000 in emergency savings.
- 44 % of respondents say they are much or somewhat better off financially today than they were one year ago.
- 41 % of respondents report they have at least a fair amount of financial stress today (20 percent say they have quite a bit or a great deal of stress).
- 28 % have trouble meeting monthly household expenses.
- 49 % weren’t able to make major purchases (such as computers, appliances, electronics, furniture) over the past year that they want or need.
- 44 % don’t have at least $2,000 in emergency savings for unexpected expenses that occur.
To read the full study from purchasingpower.com –
In a different study on WebMD , the effects on the body are alarming and costly:
- Forty-three percent of all adults suffer adverse health effects from stress.
- Seventy-five percent to 90% of all doctor’s office visits are for stress-related ailments and complaints.
- Stress can play a part in problems such as headaches, high blood pressure, heart problems, diabetes, skin conditions, asthma, arthritis, depression, and anxiety.
- The Occupational Safety and Health Administration (OSHA) declared stress a hazard of the workplace. Stress costs American industry more than $300 billion annually.
- The lifetime prevalence of an emotional disorder is more than 50%, often due to chronic, untreated stress reactions.
Financial education in the workplace is a good place to start to combat this issue head on. Business owners can help employees to get educated about their finances and know how to be organized and formulate a long term plan. When employees gain knowledge, they are less worried and distracted by financial stress. They have a renewed sense of control. Ultimately their life improves and they sleep better at night to be more productive during the day.
To learn more, watch this short interview with Denver Nowicz on the impact of financial stress and the benefits of financial wellness.