If you’ve noticed that your employees have dropped the ball when it comes to their performance, or otherwise aren’t as productive as you would like, there’s a high chance there are external factors at play. One of the most common causes of poor workplace performance is money, specifically the common issue of financial stress. Financial stress is a pervasive problem that follows sufferers around all day. It’s not something that can be easily left at home, often impacting their attitude at work.
The cost of living is rising, and there are always new shiny objects and temptations to spend our discretionary income on. Regardless of someone’s financial position or goals, there is still a chance of financial stress creeping up if they don’t have the tools to manage their money well. Whether it’s paying off record household debt, running a car and paying for childcare, or trying to get ahead for a comfortable retirement, financial worries can inflict anyone!
How Financially Stressed Employees Impact Your Business
Financial worries will inevitably impact your staff’s ability to do their best work and in turn, your business’s bottom line. According to the ANZ Financial Wellbeing Report, financially stressed workers spend almost 10% of their paid working hours thinking about financial issues. This means that even though your employees are showing up to work, they’re not truly working at their full capacity. AMP has also found that financial stress led to increased employee turnover and sick days being taken, costing employers up to $31 billion every year. When employees don’t show up at all, work goes undone and increases stress for other stafff members who must step up to fill the gap.
Furthermore, chronic financial stress article can lead to serious health issues, such as headaches, heart disease, obesity and clinical depression if left unsolved. While it may not cause a problem today, losing a valued employee to a critical illness at a later date could prove to be very costly for both of you. Think about how financial stress might be impacting your employees. If they’re distracted, tired, or stressed, they’re not giving their best. If they’re not giving their best, is your business reaping the full benefit from your staff?
How to Tackle Financial Stress in the Workplace
There are a few strategies you can use as an employer to deal with financially stressed employees. If you’re concerned about a particular worker, it might be appropriate to bring up the topic of financial wellbeing with them. It doesn’t have to be a formal meeting – a casual conversation can go a long way to help bring potential issues to the surface so something can be done about it. Keep in mind, however, that these topics may be considered intrusive or sensitive. Make sure to judge the relationship between yourself, the manager and the employee and tread appropriately.
Instead of pushing to understand their personal finances, consider framing it as assessing their interest and feedback in a financial wellbeing program or associated benefits. This shows that you care about your workforce’s physical and mental health while not prying beyond what is necessary to help them. Financial wellness programs are an increasingly popular employee benefit that are low-cost yet deliver significant value. If this program can help reduce financial stress in your workforce, you stand to benefit from improved productivity, reduced absenteeism and healthier colleagues!
Earned Wage Access Can Help Reduce Financial Stress
Earned Wage Access can form an integral part of your organisation’s financial wellbeing program. Earned Wage Access allows your employees to access their earned pay at any point of the pay cycle, without having to wait until their next payday. When an unexpected bill or expense arrives, instead of turning to credit or to a potentially dangerous payday loan, employees can alternatively access a portion of their earned wages to cover any shortfall.
Paytime gives your employees on-demand access to their earned wages through a convenient mobile app. It’s easily worked into your existing payroll system, avoiding any disruption to your usual processes. When an employee wants to access some of their earned income, they will be charged a small, fixed platform fee (less than the cost of a cup of coffee) and Paytime will deduct the amount from their next paycheck. Paytime is a great tool to establish financial wellness in your employees and reduce financial stress by equipping them with a means to cover any emergencies that may come their way.
If your company wants to empower your employees to improve their financial wellbeing by enabling flexible, on-demand access to their earned wages, contact Paytime today!
