Most Americans live paycheck to paycheck, leaving them in a tough situation when emergencies happen, whether or not they have savings in place. Major car repairs and medical bills come up, but most people are forced to borrow to cover these unexpected expenses. That’s when the financial pain begins. Millions are languishing in debt and are stressed about how to pay for it all. It can be an incredible drain on their wellbeing and productivity at work.
People of all levels of income and education have financial problems, usually because of poor habits, unfortunate circumstances, or not enough financial education. While this may not seem like a workplace issue, it is. The financial stress your employees are facing can have a cascading effect on absenteeism, morale, productivity, and your bottom line.
Fifty-three percent of all employees are stressed about their finances (2017 PricewaterhouseCoopers survey) and nearly one in three employees say finances have been a distraction at work. Almost half of those employees spend three or more hours a week handling their personal finances at work. Stressed employees are also twice as likely to miss work because of their personal financial issues and more inclined to cite health issues caused by financial stress. Financial wellness as an employer provided benefit is becoming much more common. Eighty-one percent of employers recently surveyed by AON Hewitt indicated, “it’s the right thing to do for their employees.”