How Financial Stress Impacts Employees and the Bottom Line

• Nearly 50% of workers in the U.S are financially stressed
• About 80% of Americans now live paycheck to paycheck
• Four out of five employers say their employee’s personal financial issues are impacting job performance
• Employers are implementing financial wellness programs to help their employees take control of their finances

Every year, personal finance is ranked as the leading cause of employee stress in the U.S. Workers from all across the country report that financial stress has caused them to have sleepless nights, has made them suffer from depression, has lowered their work quality, has negatively impacted their relationship with colleagues, and for some, has caused anxiety and panic attacks.

It would be reasonable to think that this all stems from low wages but it does not. In fact, a recent survey shows that 4 out of 10 people making over $100,000 consider themselves to be financially unstable. This stress is not only detrimental to employees, but also to companies’ bottom line. According to a survey:

• Financially stressed employees lose nearly one month of productive workdays per year.
• Stressed employees are 2 times more likely to seek a new job opportunity.
• Financial stress results in approximately 11–14% of annual payroll costs in lost productivity and increased turnover.

How can I help reduce the financial stress of my employees?

More employers are starting to recognize this burden and have started taking steps to help their employees. In 2019 a survey found that almost 50% of workers at large companies (25,000 or more employees) said their employer offers financial wellness benefits. In small companies (fewer than 100 employees), that number is about 37%.

There are many programs that help employees, one of those is Onward! With a combination of savings, financial education, and coaching it is the perfect tool designed to relieve the financial stress of your workforce. Offering a financial wellness program like Onward to your employees can:

• Lower absenteeism
• Lower employee turnover
• Fewer requests for loans and pay advancements
• Increased employee happiness and productivity

Implementing a financial wellness program can bring a myriad of different benefits to both the employees of a company and the bottom line of the company. To learn more about how you can help your workers achieve financial health, visit us at www.onward.org