Financial Stress and the Impact it’s Having on Employees
According to the most recent PwC Employee Financial Wellness Survey, many employees feel pressure simply to meet day-to-day expenses.
Financial stress impacts your employees’ mental, physical, emotional, and social health, which affects them every day, leading to low productivity at work, struggles with retention rates, and mental health issues amongst them.
When employees have more distractions in their lives, they are more likely to be less productive at work. PwC says 76% of employees reported that their financial stress had negatively impacted their productivity. Further, 55% of employees who are financially stressed have said it has distracted them for 3 more hours at work dealing with finances.
The hard truth is if your employees suffer financially, they are most likely searching for new job opportunities. They are twice as likely to be looking elsewhere, and of 29% of employees searching for new jobs, 65% said that money is the top reason, according to PwC. This leads to a high turnover rate and low retention.
It’s no surprise financially stressed employees also report poor mental health. According to money and mental health, 46% of people in debt report having mental health issues. 86% of people with mental health issues have reported that financial stress has also worsened their mental health.
Financial stress hurts the bottom line
Employees’ financial stress affects the employer at the end of the day. Financial stress causes employees to produce lower-quality work, have poor relationships with coworkers, and seek other employment opportunities. Due to these, employers pay a cost from having high turnover rates, increased healthcare costs, less participation in 401k benefits, and more.
Addressing these concerns will lead to better company culture and, ultimately, a more successful business.
Financial wellness is the solution and here’s why:
By offering a financial wellness benefit into your overall wellness offerings, you will take the financial burden off your employees and, in return, get higher retention rates, happier employees, and more productive and engaged employees. Your Money Line is here to help your employees prepare for retirement, create a budget, get spending under control, pay off debt, save more, etc.
Your Money Line provides one-on-one coaching, personalized resources, articles, videos, assessments to determine where they are financially, and so much more to help your employees tackle their financial life so they can be present at work and give the energy they need to be productive.
Employers should show their employees that they care about their overall well-being, which includes their financial well-being, to lower turnover rates and increase retention. By incorporating Your Money Line, your employees are more than likely to stay because they have access to the resources they need to succeed financially.
At YML, we take a holistic and empathetic approach to financial wellness. Our Financial Guides, who are all Certified Financial Planners® and/or Accredited Financial Counselors®, will meet your employers wherever they are in their financial journey. At Your Money Line, we provide multiple approaches to financial wellness because everyone’s needs vary – from triage to accountability.
Request a demo today to lower your employees’ financial stress daily.