Zombie Employees: Who Are They and What Do You Need to Know?

Zombie Employees: Who Are They and What Do You Need to Know?

Zombie Employees: who are they and what do you need to know? This is the reason why employees are distracted, taking more time off and losing sleep.

Financial stress keeps 40 percent of Americans up at night, according to a new survey from Marcus by Goldman Sachs. This echoes research from Fidelity Investments, which found those with financial stress don’t get enough sleep and are more likely to be frequently stressed-out or anxious.

But employees aren’t just losing sleep. Financial stress can lead to poor health, lower productivity and higher absenteeism. The result is a disengaged workforce, a.k.a., zombie employees.

Zombie Employees, Financial Stress and Health

Nearly 90 percent of those surveyed by Marcus by Goldman Sachs agree financial well-being has an impact on their overall health. Willis Tower Watson found employees with high levels of financial stress are twice as likely to have poor health as opposed to those without financial stress. Employees struggling with finances are absent twice as often as those who are financially stable. Financial stress is so high, more than 25 percent of Americans skip necessary medical care because they’re unable to afford the cost, according to the 2017 Federal Report on Economic Well-Being.

Financial Stress at Work

Employees bring financial stress with them to work. Bank of America found more than 50 percent of employees who feel stressed report that it interferes with their ability to focus and be productive at work. More than 40 percent of employees spend 3 or more hours at work dealing with personal finance matters each week. John Hancock found 70 percent of financially stressed employees worry about personal finances at work, costing employers up to $2,000 annually per employee in lost productivity.

The good news is, a recent survey by Bankrate found almost 90 percent of Americans have a financial goal they’re hoping to accomplish in 2019, like paying down debt, budgeting spending better and saving more for retirement. The catch? They’ll need help to achieve their financial goals. Marcus by Goldman Sachs found almost 60 percent of Americans found tracking and budgeting expenses to be more stressful than activities like opening a new savings account or trying a new workout.  

Financial Wellness Programs

Employers can help zombie employees overcome financial stress and revive their work lives. A report by Ernst & Young found more than 40 percent of employees who are engaged with their financial wellness program are likely to remain productive in the office. The right financial wellness program will help employees reduce financial stress and its detrimental effects so they can bring focused productivity back to work.

More on Financial Stress and Employee Wellness

5 Must-Have Benefits for Millennial Employees

How Does Financial Wellness Affect Health?

5 Fast Financial Stress Statistics

Hiring Trends to Watch in 2020

What Is Financial Literacy and Why Is It Important?

4 Big Employee Benefit Trends for Family Planning

How Can Financial Wellness Be Improved?

Top 10 Employee Benefits for 2020

 

Revealing Research on Financial Stress and Productivity

Revealing Research on Financial Stress and Productivity

Revealing research from Fidelity Investments highlights the toll financial stress takes on productivity through increased absenteeism.

Absenteeism doubles for employees with high levels of debt, according to a recent study by Fidelity Investments.

The study focused on the four pillars of well-being (financial, health, work, and life) and found that employees struggle most with their financial well-being. A whopping 98 percent of respondents reported feeling stressed in the past three months. Employees reported high levels of stress caused by debt (33%), saving for the future (34%), their job (47%), and their weight (30%).

Workers with high levels of debt were very unlikely to be in “excellent” health, only 14% compared with 35% of workers without debt issues. Those struggling with debt were also less likely to get enough sleep and more likely to be frequently stressed or anxious. On average, employees with the highest levels of debt missed an additional full week of work more than those with the lowest levels of debt.

Past-due medical bills were the leading indicator of workplace absenteeism, followed by payday loans, personal loans, retirement plans, and mortgages. Surprisingly, student loans and credit card debt were not significant causes for employees to miss work.

“When it comes to total well-being programs, employers have traditionally focused on health, but have recently expanded efforts to include financial wellness. Financial wellness programs have gone a long way toward helping workers to create a budget they can live with and have helped many employees consolidate and/or minimize debt,” said Jeanne Thompson, head of Global Workplace Insights, Fidelity Investments.

Strong healthcare plans, retirement plans, and payday advance programs could reduce absenteeism and help employers take back productivity. In order for those systems to be effective, however, employees must learn how to manage their money. Financial wellness programs, like Best Money Moves, lower the high levels of financial stress employees experience by helping them take control of their personal finances.

What is Financial Toxicity?

What is Financial Toxicity?

In the Best Money Moves Roundup, we run down the latest news on student loan and retirement assistance, the benefits of biking and artificial intelligence in the workplace.

If you ever wondered if there was a direct link between financial stress and health outcomes, look no further. According to research compiled by Managed Care, Americans are skipping medications that could improve their quality of life because they can’t afford them.  The term financial toxicity was coined by Amy Abernathy, MD, in an essay for the journal Oncology.  “Out-of-pocket expenses related to treatment,” she wrote, “ are akin to physical toxicity, in that costs can diminish quality of life and impede delivery of the highest-quality care.”

The truth is many employees need help navigating healthcare benefits to lower out of pocket expenses and avoid , “financial toxicity.”

What can you do about it?

What We’re Reading

Employer tackles student loan debt and retirement. When employees contribute 2% of their salary to paying down student loans Abbott Laboratories will pay the equivalent of 5% of an employee’s salary to to their 401(k). Learn more about their Freedom 2 Save program.

Happier, healthier employees. An initiative in France incentivising employees to bike to work led to a 15 percent reduction in sick leave, lower transportation expenses, less stress and higher job satisfaction. See how it worked.

Would you trust orders from a robot? More than 90 percent of workers responding to a recent study would, but progress is slow when it comes to companies adopting and preparing for artificial intelligence in the workplace. Read the full results breakdown.

Open offices lower direct communication. Recent studies found that email and instant messaging conversations increase significantly, productivity declined, and face-to-face interaction decreased when offices transitioned to an open landscape. Why this happens and how it relates to insect behavior.

Help Millennials secure their financial wellness. Nearly 70 percent of millennials are stressed about their finances. Help them get on track and back to work. Share this quick tipsheet with your employees.

A simple gesture to support employee’s mental health. With recent rises in mental illness and suicide employers cannot avoid addressing mental illness any longer. A memo like this is a good start.

On-demand health insurance. A new startup offers employees a core set of health care benefits and the option to add coverage for specific procedures. Is this the future of insurance benefits administration?

Have something to add? Email info@bestmoneymoves.com.

A Lack of Healthcare Benefits is Causing Financial Toxicity

A Lack of Healthcare Benefits is Causing Financial Toxicity

A lack of healthcare benefits is causing financial toxicity for employees across the country.

If you ever wondered if there was a direct link between financial stress and health outcomes, look no further. According to research compiled by Managed Care, Americans are skipping medications that could improve their quality of life because they can’t afford them.  The term financial toxicity was coined by Amy Abernathy, MD, in an essay for the journal Oncology.  “Out-of-pocket expenses related to treatment,” she wrote, “ are akin to physical toxicity, in that costs can diminish quality of life and impede delivery of the highest-quality care.”

The truth is many employees need help navigating healthcare benefits to lower out of pocket expenses and avoid , “financial toxicity.”

A recent study by Willis Tower Watson found that those with high levels of financial stress were twice as likely to have poor health as opposed to those without financial stress. And the longer employees go without treating illnesses the more business is affected by lost productivity and absenteeism.

Adams Dudley, MD, a pulmonologist, and Director of the Center for Healthcare Value at the University of California-San Francisco is concerned about the prescription crisis we’re facing and said that, “This problem definitely impacts the lives of patients. They’re skipping medicines or skipping other things to buy medicines.”

As a prescriber, Dudley finds difficulty distinguishing what patient pays how much for the same drug because insurance coverage varies greatly, “These days price is such a weird thing. If I give one patient Spiriva [a bronchodilator], the cost could be $10. For another patient, it may be $200 a month. And I don’t get good information about which patient is which.”

Michael A. Evans, Vice President of Enterprise Pharmacy and Chief Pharmacy Officer of Pennsylvania’s Geisinger Health System shares a spreadsheet with prescribers of available medications for a patient’s condition along with the average wholesale price (AWP) of each medication to help prescribers lower patient costs. Evans said that for prescribers, “It’s been quite eye-opening for them, helping them better understand the cost burden on the patient in front of them, and it has definitely affected their prescribing habits. We get responses like, ‘Wow! I had no idea medication A I gave was so expensive. I could certainly use medication B.’”

Evan’s cost transparency sheet offers a solution to the problem Dudley describes, but a drawback is that the AWP is the cost of the drug to the health plan and the patient combined. This makes so it difficult to determine the patient’s actual expense.

Dudley points to another pertinent issue in healthcare, the discrepancy between the cost to make a medicine and the price it sells for. He says, “To many people, $160 is a lot of money. But almost anyone would rather spend it taking the family to dinner than paying for a medicine that cost three dollars to make.”

Employers can help address out-of-pocket costs for prescriptions by being knowledgeable about insurance benefits they offer, updating employees on any changes and asking for feedback to see if the current program is meeting their coverage needs.

Most Employees Think Companies Aren’t Prepared for This

Most Employees Think Companies Aren’t Prepared for This

In the Best Money Moves Roundup, we run down the latest news on traumatic incidents in the workplace, pet perks, and payday advances.

Employees need support and guidance after traumatic events – like the sudden loss of a colleague or a natural disaster – but only 26 percent of workers are getting it.

Most employees surveyed by Workplace Options (WPO) have worked for an organization that experienced a traumatic event. More than half of them said that a disaster recovery plan (DRP) or business continuity plan (BCP) wasn’t in place to help employees affected by the event – or if there was nobody told them about it.

DRP’s are a valuable benefit for nearly 70 percent of employees and should be a priority for  employers. It’s estimated that less than half of employers have a DRP or BCP plan in place, but they’re critical for dealing with disasters.

See Exactly How Hard Poor Preparation Hits Businesses

What we’re reading:

Office pet perks? Corporations are starting to bring in pets for occasional office visits to reduce employee stress, Amazon even allows employees to bring their dogs to work daily. Learn about the psychological benefits of pet perks.

Employer payday advances. Early access to pay is a financial perk that could make employees happier, but is it a good idea since most Americans are already struggling to save? See for yourself.

Wellness initiatives lower diabetes. New research found that those who tested as diabetic or prediabetic had normal blood levels after participating in an employer-sponsored wellness program. Combat rising healthcare costs.

Exits are opportunities in disguise. Whether you collect information from a departing employee through an interview or survey, it’s important that you obtain their feedback. Mitigate future turnover risks and costs.

Empathy is key. Employees would be willing to leave their job for a more empathetic employer, so respect is still crucial for job satisfaction. Find out what the C.A.R.E. model is and how it can help employers be more empathetic.

Discover joins tuition trend. Degree assistance has been a hot employee benefit this summer and Discover plans to join in by offering the majority of employees (even new hires) full rides for bachelor’s degrees at several schools. More on this developing benefit.

Your employees need more than a vacation. Stress dissipates on vacation, but for most employees it comes back in full force the second they get back to work. How to address the larger problem.

Have something to add? Email info@bestmoneymoves.com.