Nearly 60 percent of Americans feel like their finances have taken control of their lives, according to research by Capital One and The Decision Lab.
Financial stress impacts their performance at work and the more stressed they are the less likely they are to make smart decisions when it comes to spending and saving.
How Financial Stress Impacts Job Performance
More than 40 percent of Americans admit financial stress makes it difficult for them to concentrate at work. Research by John Hancock Retirement found the loss of productivity combined with absenteeism from financial stress costs employers more than an estimated $1,900 per year, per employee, and total an estimated annual loss of $1 million for midsized employers and $19 million for large employers.
Financial stress causes feelings of fatigue and interferes with sleep for more than 40 percent of employees. A survey by Bankrate found closer to 80 percent of U.S. adults are losing sleep worrying about everyday expenses, saving for retirement and healthcare costs. Sleep deprivation can impair cognitive ability, making it harder for employees to think and process information.
Financial stress has a significant impact on employees at work. It can lead to lowered productivity, impair the ability to problem solve and moodiness or irritability from loss of sleep could make it difficult for employees to collaborate and communicate effectively.
How Employees React to High Levels of Financial Stress
In their research, Capital One and The Decision Lab found that even when they controlled for household income and FICO scores, high levels of financial stress were linked to worse financial attitudes and practices. Those who experience a high level of financial stress are:
- Less likely to save on a regular basis
- Less likely to plan their spending
- Less likely to feel in control
- More impulsive with how they spend their paycheck
- Less likely to agree that success comes to those who work hard
How Financial Wellness Programs Help
Financial wellness programs, like Best Money Moves, can help employees regain control of their finances.
Best Money Moves has tools and features that help employees measure their financial stress, budget for monthly expenses, pay down debt and plan for emergencies. Employees can talk to trained professional financial counselors and educate themselves about everything from investing to co-signing loans to buying their first homes with access to a library of over 700 articles, videos and calculators.
Best Money Moves is also gamified, featuring a point-based rewards system where users earn points every time they log in, enter their information into their profile, work with their budgets, read articles and measure their stress. Each point translates into a chance to win a monthly contest.
If you want to learn more about how Best Money Moves can bring financial wellness to your company download our whitepapers and sign up for a demonstration here.
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