Stress about finances is impacting employees’ health and performance
Almost 1 out of 3 employees reported that they put off a medical procedure or other health care needs because of their financial situation.
A new study by SoFi, a San-Francisco based personal finance company, found that nearly 9 out of 10 employees say they’re stressed about finances. Almost half of employees surveyed described their financial status as “just getting by.”
Not having enough money to set aside for savings is a primary concern. Forty-eight percent of employees worry they don’t have enough saved for an emergency and 45% fear they don’t have enough reserved for retirement. The study found that 37% of employees are taking on more credit card debt and 1 in 5 employees have borrowed from their retirement savings.
When it comes to health, almost 1 out of 3 employees reported that they put off a medical procedure or other health care needs because of their financial situation. But the impacts of financial stress extend beyond physical health.
“The economy is weighing heavily on everyone’s minds, and financial stress is affecting employees’ day-to-day lives and work performance,” said Michael Bourgeois, Vice President and Business Lead at SoFi at Work.
According to the study, 86% of employees feel increasingly stressed about their finances. Dealing with concerns of inflation and the rising cost of goods has an impact on employees’ overall wellbeing. Forty-seven percent of employees said financial stress negatively impacts their mental health — an 11% increase from last year’s study.
Related: Rethinking benefits can drastically improve employees’ financial wellness
Additionally, 37% of employees say financial concerns hinder their motivation at work and 36% say their physical health is impacted as a result.
The study suggests that organizations that offer financial well-being benefits can reduce the impact of financial stress on employees by as much as 10% to 13%. Three out of 4 employees say financial wellbeing benefits make them more likely to stay with their employer.
While 70% of HR leaders say their company offers financial wellbeing benefits only 48% of employees are aware of them. The study recommends that employers take advantage of these statistics and close the communication gap when it comes to finances.