Why the state of your employees' finances is costing you money

why the state of your employees finances is costing you money

If 40% of your staff spend their working hours worrying about personal money matters, that can't be good for business. But that's exactly what research indicates is happening.

In fact, in 2016 alone, Australian companies lost an estimated $47 billion in annual revenue due to stress-related sickness.

So why is financial stress so costly?

Because it has negative impacts on key performance outcomes including productivity, innovation, turnover, job dedication, absenteeism and efficiency. 

Stressed workers stay home

In short, an employee's ability to perform at work is severely compromised when they have money worries, and they take more sick days as a result.

Each week financially stressed employees lose an average 6.9 hours of productive work and are absent 1.3 hours due to stress-related sickness. In sheer dollar terms, that costs Australian businesses an average of more than $5000 in wages per employee, per year.

On top of that, stressed employees are more likely to develop physical and mental illnesses, and leave their job for a better paying one.

All this means lower productivity, higher staff turnover and ultimately lost revenue, for your business.

Each week financially stressed employees lose an average 6.9 hours of productive work and are absent 1.3 hours due to stress-related sickness.

Stressed workers also come to work

Not all stressed workers stay at home however, with worries about potential underperformance or redundancy leading them to come to work, even if they are unwell.

The impact of this so-called presenteeism is hard to quantify. Some research indicates it causes up to six working days’ worth of productivity to be lost each year per employee.

Other studies have shown that two in every five employees spend up to 10% of their working week worrying about, or dealing with, personal financial matters.

Not surprisingly then, one in four workers report money worries have affected their ability to do their job, and one in ten say they have found it hard to concentrate or make decisions at work.

Significantly, up to a quarter of employees lose sleep over money woes and a third admit to being less careful as result of tiredness. Financially stressed workers may therefore be more likely to make costly mistakes and have workplace accidents.

What you can do

Combined, there is a compelling business argument for employers to think seriously about the impact of financial stress on their employees, and develop strategies to improve their workers’ financial and emotional wellbeing.

Indeed, 48% of businesses in the UK are now offering services to promote financial wellbeing and reduce stress.

Bees with Honey aims to fill that space in Australia through its marketplace of good financial education and expert advice.

It's a risk-free way to help your employees regain financial control while reducing the cost burden on your business.