Page 29 - A Guide To Financial Health v2
P. 29
Chapter 03: Financial Stress
Employers report that the problem could be even worse. In a survey
conducted by the International Foundation of Employee Benefit Plans, 60%
of employers report that financial stress affects their employees’ ability to
focus, and 34% report absenteeism and tardiness. A study published in the
Journal of Financial Counseling and Planning found that financially stressed
employees are less likely to be productive, and that stress as a reason for
absenteeism has increased over 300% since 1995.
Employee financial stress has a dramatic effect on
business
For an employer with 10,000 workers, that adds up to 3,000 distracted
employees, and 1,380 workers spending more than three hours per week
dealing with financial stress. According to PwC, this can mean losses of up
to $3.3M per year. And that doesn’t even include the 12% of employees who
admit missing work from time to time—PwC estimates that could cost as
much as another $166,000 per year for an employer of 10,000.