Personal financial stress is making an impact on employee productivity. A new study shows employees are spending a weekly average of 9.2 hours on their personal finances, while at work.
Yet, mixed signals abound about employee confidence in their personal financial and career futures. Three out of four workers face major financial stress, yet a majority are confident 2022 will be a better year.
According to new research published by SoFi at Work, an employee benefits firm, 75% of workers are facing at least one source of major financial stress and more than half (51%) felt more stressed about their finances in 2021 than ever before.
Employees say this stress has worsened their sleep (38%), mental health (36%), physical health (27%), ability to focus at work (23%), and productivity (18%). Some workers have resorted to taking on a second part-time job (25%), taking on more credit card debt (25%), withdrawing from their retirement savings (19%), or getting a loan from family or friends (19%).
Employers might want to pay heed. In addition to a day of work a week being lost, employees are feeling a little less love for the folks who sign their paychecks.
A survey conducted by Salary Finance, a global provider of workplace financial products, says the number of employees who say they feel their employer cares about their well-being declined year over year, from 63% in 2021 to 57% in 2022. Among those struggling with financial stress, 52% feel that their employer cares about their well being.
Salary Finance said it’s not a significant drop, but it comes at an inopportune time for employers who are dealing with The Great Resignation. The majority - six out of 10 - of employees looking to leave their jobs are financially stressed, putting the onus on employers to acknowledge the problem, the company said in a news release.
Employee expectations of employer support don’t reflect reality, yet. According to SoFi, 84% of employees believe their company should be responsible for their financial well-being, but only 55% feel their company is concerned about their financial wellness.
As mentioned, not all is doom and gloom. The SoFi at Work study found there’s widespread optimism across the workforce that 2022 will be a year of positive change when it comes to personal finance progress, with more than 9 in 10 or 91% of employees confirming they’ve committed to improving their financial well-being by setting financial goals for 2022.
The company says employers are a key part of that equation with three-fourths of those surveyed planning to offer more financial well-being benefits programs within the next two years.
