Everyone has to deal with some form of stress, but financial stress not only impacts an employee, it also affects the company that employee works for.
Here’s a fact that just came out a few weeks ago: A record 7 million Americans are 3 months behind on their car payments. That is one million people higher than were in that position in 2010 when the unemployment rate was 10 percent. Since a car is necessary for most people to get to work, the potential of losing that vehicle and being unable to get to their place of employment causes real stress.
We know that stress affects the sufferer and the family. What many don’t consider is the effect of that stress on the organization where person works. In a recent IdeaXchange blog, I discussed how important it is for a company to help relieve the financial stress of its employees by supplying financial wellness education. According to Lou Ressler of Associated Financial Group, a financial services firm, who spoke at one of our NationaLease meetings, employee financial stress can lead to significant costs for the company.
- Financial stress costs US businesses $300 billion annually or a cost of $1,685 annual productivity loss per employee
- Employees with high levels of stress have 46 percent higher health care costs than those with lower stress levels
- 25 percent of workers report that financial stress distracts them from work
Ressler recommends that companies institute financial education training that includes things like debt management, retirement, investments, college planning, and more.