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Published 18 April 2023 | 2 min read
21% of Employees Lose Motivation at Work Due to Financial Stress
We've all experienced stress at work, whether it's from a heavy workload or a tight deadline. However, one source of stress that often goes unnoticed is financial stress. According to the Employment Hero's Wellness Report 2022, financial stress is one of the most subtle types of anxiety, and it can have a significant impact on an employee's well-being and productivity.
To better understand the impact of financial stress on employees, let's look at the example of a small New Zealand business that had to close down due to financial difficulties. The owners of the business had to lay off their staff, causing financial hardship for everyone involved. The stress of not knowing how they would pay their bills, let alone find another job, weighed heavily on the employees and made it difficult for them to focus and be productive at work.
Financial stress is not only a personal problem; it also affects employees' performance at work. As per the Employment Hero's Wellness Report 2022, 21% of employees reported losing their motivation at work due to financial stress, while 19% claimed it made them feel tired and distant. In addition, 18% of employees said that stress around money had them seeking a better-paid job. Employers need to be aware of the impact that financial stress has on their workforce and take steps to address it.
How Employers Can Help?
- Provide financial education: Employers can offer workshops or seminars on financial planning, budgeting, and debt management to help employees better manage their finances.
- Offer flexible pay arrangements: Employers can consider offering flexible pay arrangements, such as allowing employees to receive their pay on a weekly or bi-weekly basis or giving them the option to receive a portion of their salary in advance.
- Provide financial counseling: Employers can partner with financial advisors or counselors to offer free or subsidized financial counseling services to employees.
- Offer employee benefits: Employers can offer employee benefits such as health insurance, gym memberships, and other wellness initiatives that can help alleviate financial stress.
- Encourage paid time off: Employers can encourage employees to take time off when they need it to help alleviate financial stress.
- Provide financial incentives: Employers can consider offering financial incentives such as bonuses or profit-sharing plans to help motivate employees and alleviate financial stress.
- Foster a supportive work culture: Employers can create a supportive work culture that encourages open communication and transparency around financial issues.
- Allow access to earned pay: Employers can consider allowing employees to access their earned pay ahead of payday, which can help alleviate short-term financial stress.
Employers who take steps to address financial stress in the workplace can benefit from increased productivity, reduced absenteeism, and higher employee morale. Employees who feel supported and valued by their employer are more likely to be engaged and productive at work.
In conclusion, financial stress is a significant problem that affects many employees' productivity and well-being. Employers can take steps to address financial stress in the workplace, including providing financial education, offering flexible pay arrangements, providing financial counseling, offering employee benefits, encouraging paid time off, providing financial incentives, fostering a supportive work culture, and allowing access to earned pay. By doing so, employers can create a more productive and engaged workforce while helping their employees achieve financial well-being.