The Growing Cost of Financial StressSubmitted by GRP Advisor Alliance on March 19th, 2019
It’s no secret that financial stress has a significant impact on mental health, productivity, turnover and absenteeism in the workplace, but how much money does it cost U.S. businesses?
A recent survey of 10,000 Americans describing the current landscape of rising employer costs conducted by Salary Finance, a company that helps people out of debt and into saving, states that “American businesses are losing $500 billion per year due to employees' personal financial stress”. While that number may come as no surprise to those familiar with the cost of stress in the workplace, $500,000,000,000 is enough to grab everyone’s attention. Lost productivity, turnover and other factors related to stress cost the average company between 11 and 14 percent of their total payroll expense.
A strong behavioral-based financial wellness program drives results in areas that are strategically important to the success of an organization, i.e. the bottom line.
Financial Finesse is an unbiased financial education company providing personalized and innovative financial education and counseling programs to over 2.4 million employees at over 600 organizations. Financial Finesse partners with organizations to reach goals such as increasing plan participation, decreasing stress, increasing productivity, and reducing fiduciary liability.
Using Financial Finesse’s predictive model, companies can set research-based benchmarks for their program customized to employee demographics and financial wellness levels. For the hypothetical 5,000-employee company discussed here who implements a comprehensive workplace financial wellness program according to industry best practices, pulling all those results together could result in total cost savings of nearly $3 million.
Source: Financial Finesse
Implementing a financial wellness program has become the ‘right thing to do’ for employees but now also the ‘right thing to do’ for the company’s bottom line, and it should be a topic of discussion in every board meeting across the country.