Financial Stress: The Quiet Culture Killer
May 2023
Workplace Whitepaper
Financial stress is often an unrecognized factor in the workplace. While its effect on mental health is well established [1], its impact on productivity and employee loyalty is rarely discussed. A growing amount of research shows that addressing employee’s financial stress is a key lever to performance.
Is your company leaving money on the table by not addressing Financial Stress?
Key Findings
Employees’ financial stress has a significant impact on their employers.
Financially stressed individuals have the capacity to save more from their income than they spend, but do not do so due to the effects of stress.
Lack of liquidity is a main driver of financial stress.
19.5 days a year per full time employee
Financial stress is one of the most common and persistent forms of stress in the world.
- One in five employees admits that productivity at work has been impacted by financial worries.
- 49% of employees who are distracted by their finances at work say they spend three or more working hours each week thinking about or dealing with issues related to their personal finances.
- Over a year, a full-time employee may spend more than 156 hours (or 19.5 days) distracted from work because of personal money matters.[2]
Finances are the #1 source of stress; more so than work, health and family issues.
* According to PwC’s Annual Financial Wellness Surveys [2]
- employees burdened by money matters are nine times more likely to have troubled relationships with coworkers. [4]
- 2x more likely to be searching for a new job. [4]
Greystone Consulting, an affiliate of Morgan Stanley, stated the same: that 60% of employees are more likely to stay with an employer that offers a program designed to help them manage their money. [6]