Financial Worries Affect 70% of U.S. Employees
Stress about money has far-reaching effects on the average U.S. employee, according to a survey by the Society for Human Resource Management.
This 2014 survey of human resources professionals finds that seven out of 10 employees indicated that personal financial issues have either "a large" or "some" impact on their performance. What's more, almost 40% of workers say they have more financial challenges now than when the recession started in 2007.
Money struggles can have a negative effect in more than just a person's job performance level. Someone who is concerned over their financial situation is more likely to take out a loan or even a hardship withdrawal against their retirement savings. This seriously hurts their ability to save long term and adds to the stress they feel, which can further diminish their production at work.
Just as surely as financial problems can limit an employee's output, providing assistance and teaching tools about handling money responsibly can reduce their stress level and raise their morale, thus benefitting your company as a whole.
The best tool an employee can receive to help turn their situation around is financial education provided by their employer. This sentiment was echoed by Shawn Gilfedder, the president and CEO of McGraw-Hill Federal Credit Union, which sponsored the HR survey. "To overcome these challenges, companies must make the financial wellness of their employees a priority," he said.
Good financial education means a person is shown a healthy overall approach to their money. That includes making a budget for their household, starting an emergency fund, paying off debt, and investing. When an employee doesn't spend his or her time worrying about money, they are happier and more productive.
The power to initiate financial transformation and success for your employees starts with you. The result will be felt by your workers and your company for years to come.