A total of eight in 10 Americans have debt, according to a July 2015 report released by The Pew Charitable Trusts. Much of this includes perfectly manageable debts — such as mortgages and car payments — but of course, others aren’t quite as easy to keep up with. A 2016 report from ValuePenguin found that 38.1% of households carry credit card debt, with the average for balance-carrying households reaching $16,048.
Not quite knowing how to make ends meet each month is incredibly trying, and can easily cause people to deviate from their standard behavior. If your employees are carrying the weight of financial issues on their shoulders, it’s bound to impact every aspect of their lives, including work.
Three Ways Employees’ Financial Issues Impact Performance
According to “Financial Education for Today’s Workforce: 2016 Survey Results” — a report issued by the International Foundation of Employee Benefit Plans (IFEBP) — the following are the top three ways employees’ personal finance issues influence their job.
Increased Stress Levels
The IFEBP survey reported 76% of employers noted a rise in the stress levels of employees under financial strain. Stress can lead to a slew of negative side effects, including lack of productivity, mood swings, inhibit creative thinking, increase illnesses, and can cause a person to disengage from the team.
Lack of Focus
When employees are trying to figure out how to pay all their monthly bills, it’s inevitable this will be their number one concern — not work. An overwhelming 60 percent of employers surveyed in the IFEBP survey noticed their staffers under financial duress had trouble concentrating on their jobs.
Problematic Attendance
As mentioned above, financial struggles are incredibly stressful, which take a huge toll on the body, often resulting in illness. In the IFEBP survey, a notable 34% of employers reported a rise in absenteeism and tardiness among workers experiencing personal financial difficulties.
How to Help Employees Avoid Financial Mayhem
As an employer, you can’t take control of your employees’ bank accounts, but you can provide benefits that help set the foundation for financial security. From offering employee assistance programs that allow staffers to seek financial counseling to providing comprehensive healthcare coverage and an employer-match retirement program, you can help people build a bright and steady future.
ECS is pleased to help clients and recruiters simplify the process of managing a contract labor workforce. For more than 20 years, we’ve been providing cost-effective management and deployment services to companies like yours, making it easier than ever to maintain an efficient, compliant environment. Contact us today to learn more about our services!