Employee financial stress bad for productivity
Employee financial stress is likely costing North American credit unions billions in lost productivity
Stress can affect us all. While some stress is manageable, some can wear away at our mental and physical health. In the workplace, financial stress can have a negative impact on productivity, morale and the bottom line. For credit unions, addressing employee financial stress should be a high priority.
Employee stressors
For employees, finances are the number-one source of stress. Recently, BrightPlan conducted a survey of employees from various industries, including technology, healthcare, financial services, education, manufacturing and energy. The study concluded that 72% of employees were financially stressed and listed inflation, retirement planning, stock market volatility, savings, debt and mortgage rates as the key drivers of stress.
The impacts
Financial stress in the workplace manifests into issues of mental and physical health, lower engagement and lower productivity. Per employee, it’s estimated that as much as 11.4 hours of productivity is lost per week. Over the course of a year, a full-time employee may spend more than 590 hours (74 days) thinking about personal financial issues.
The bottom line
Across North America, the impact of employee financial stress on the bottom line can be calculated in the billions. Canada’s National Payroll Institute recently placed a 40-billion-dollar price tag on the issue. Ceridan, the human resources management company, recently priced financial stress in the U.S. at $664 billion. For North America’s credit unions, the productivity loss could be over $7 billion.*
How can you help?
To combat the negative effects of financial stress and build a stronger team, consider offering a financial education program. In the Brightplan survey, financial education ranks as one of the most desired employee benefits, with the potential to have significant impacts on employee wellness and productivity.
How can we help?
Check out our It’s a Money Thing financial education program. We designed it specifically for credit unions to help members and staff improve their financial knowledge and wellness.
Tim McAlpine is the Founder & CEO of Currency Marketing. He is best known for developing the It's a Money Thing Financial Education Program that credit unions from around North America are using to connect with new young adult members. He is also a driving force behind CUES Emerge, an emerging leader program that combines online learning, peer collaboration and an exciting competition component.
