Financial stress is the outcome of persistent worrying and anxiety about meeting financial goals. Employees’ financial stress largely arises from factors like pay cuts, job loss, insufficient salary, mounting debt, unpaid bills, poor spending habits and many other similar concerns which may arise independently but could also be intertwined. This can seriously affect their health, well being and performance at the workplace. In this article we will look at the impact of financial stress on your employees, and some steps you can take to address this concern in your organisation.

Impact of financial stress on employees

Financial stress is extremely common among employees, and pandemic has further added to this stress. This intern can have adverse effects on their health and well being. Here are some of the most common implications of employees’ financial stress.

1. Health problems: The stress of not being able to meet financial goals can lead to several physiological and mental health issues among employees. Financial stress can result in hypertension and other heart related ailments, sleep loss, weight gain, anxiety and even depression.                                                                 
2. Increased Professional Tension: It’s very hard to completely separate one’s personal and professional life; and this is even more true when stress is involved. Experiencing financial stress impacts productivity. Employees tend to be more volatile and exhibit poor concentration. This could detrimentally affect the work environment and possibly relationships with customers or clients too.          
3. Higher absenteeism: Financial stress generally increases the rate of absenteeism among employees. If an employee is under a lot of stress this can affect their health detrimentally, which can deter them from coming into work. Apart from this, they may resort to alcoholism or substance abuse, which can adversely affect their health and cause them to be lackadaisical about their attendance.                                                                 
4. Low productivity: A stressed mind is a preoccupied mind. So even when stressed employees make it into the office, they exhibit poor concentration and low productivity. An employee won’t be able to give their best effort at work, when their mind is crowded with thoughts associated with their stress. 

How to address your employees’ financial stress

Financial stress is not necessarily something that is brought on by the employee themselves, and can be caused by external factors beyond their control. Given its impact,, financial stress is something that you as a business owner cannot ignore. These are some things you can do as an employer to address the concern of financial stress in your organisation.

1. Hire duo or 2 types of counsellors: one for mental health to help manage stress and the other a Financial Advisor who could aid in financial worries. Speaking to a therapist or another qualified professional can have a positive impact on employees who are faced with stress. Making this facility available to all employees will be extremely beneficial in addressing the adverse effects of any kind of stress.                                                                 
2. Provide financial wellness services: like money management sessions and financial health checks. It helps spread awareness on maintaining financial health. Partnering with a financial planning firm enables having a professional to consult, with respect to money matters. I also aids in improving the present situation of employees with financial stress; and possibly prevent any future mishaps as well. A financial planner/advisor helps employees manage their money better.                                                                  
3. Purchase employee health insurance: unpaid medical bills or costly hospital expenses definitely contribute towards employees’ financial stress. If you don’t have a plan in place, you should definitely consider purchasing group health insurance coverage for your employees. While this may not be sufficient to cover all their expenses, it will definitely provide support for them at a time of need. 

Addressing your employees financial stress will not only benefit their personal and financial well being, but will also ensure that your business continues to function optimally.