The watchdogs at the Consumer Financial Protection Bureau have produced a report suggesting workplace financial wellness programs can save employers more than they spend on such programs.
Although it was careful to couch its estimate, the CFBP said companies may be able to save up to $3 for every $1 they spend on financial wellness.
Created as part of the Dodd-Frank Act, the CFBP cited research in its report that seven out of 10 Americans claim financial stress is the most common type of stress the experience.
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That reality extends into the workplace, negatively affecting job performance and potentially leading to health issues that can increase absenteeism and even workers' compensation and disability claims, according to the report.
Data show that roughly one in five employees admitted they had skipped work in the past year to deal with a financial problem.
Other research shows the majority of Gen Xers (53 percent) say their finances are stressful to negotiate, and 29 percent said it's at the point at which they are distracted at work.
About a quarter of workers across all generations say stress over personal finances distracts them at work.
Human resource managers are noticing the effects, according to the CFPB report. Sixty-one percent of HR professionals blame financial stress for negatively impacting work performance; 22 percent said financial stress has a "large impact" on employee engagement.
In response, Aon Hewitt conducted a survey of 400 employers this year and found that three out of four are somewhat or very likely to expand employee benefits designed to promote financial wellbeing.
"Financial wellness programs are not something employers are promoting just because they want to be good corporate citizens," said the CFPB report. "Large and small employers are beginning to think about financial wellness programs at work because it makes sense to do so."
The report concedes that the health problems that result from financial stress, and the costs to cover those conditions for employers, are hard to correlate.
But several pieces of research referred to in the CFPB report link financial stress to real health problems.
One found that those who report high-debt stress suffer from more headaches, depression and anxiety, and that they experience a significantly higher incidence of tension and back pain compared to those with low debt stress.
That inevitably means more health care claims.
A study published in Health Affairs said that each highly stressed worker costs employers $413 more a year in health care costs than the average worker, an increase rivaling that of smokers.
When implemented in accord with a 401(k) program, financial wellness programs have proven to have a positive affect in lowering the rate of workers' loans from their plans, while increasing contribution rates, according to the CFPB.
It cited as an example the Department of Defense, which has seen significant results from the financial wellness programs it implemented across the armed services. One study showed soldiers doubled monthly contribution rates to the Army's Thrift Savings Plan after going through a personal financial management course.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
