Financial stress lowers employee productivity and morale and is far more common than you may think. According to an economic report from the Federal Reserve, nearly four in 10 American adults wouldn’t be able to come up with $400 in an emergency.
This article explores how employers can reduce employees' financial stress with voluntary benefits.
Financial stress takes a toll on employers and employees alike. According to a recent Salary Finance survey, lost productivity due to financial stress costs the country around $500 billion each year. What’s more, employees under such stress are more than twice as likely to seek other employers, according to the same survey. And financially stressed employees are several times more likely to suffer anxiety attacks, experience depression, miss deadlines and produce lower-quality work than their non-financially stressed counterparts.
Financial stress can come from a variety of factors, many of which are outside the workplace. However, regardless of its cause, employers can help reduce their employees’ financial stress — both for the health of the employees and that of the business itself.
A common theme in financially stressful situations is needing something now and having to borrow money to pay for it, creating a cycle of debt. This immediate need forces employees to make financial decisions that may be outside their best interests but necessary for a given situation, such as borrowing from a 401(k) or taking out a payday loan to afford car repairs.
Maybe we combine the sentences so that "Employers can help in these situations by providing employee purchasing programs, low-interest loans and payroll advances.
At the end of the day, any effort to help employees avoid financially stressful situations can improve their health and the health of your business. Speak with TruePlan Benefit and Retirement Advisors to discuss strengthening your voluntary and employee benefits offerings. Our team of experts can help you review your current selection and make suggestions based on your organization’s goals.