Report: Financial Stress is Negatively Affecting Employee Productivity

A new survey report finds more than half of workers are stressed about their finances at the moment, with a similar number saying that their money-related worries are impacting their productivity on the job.

In a recent PwC poll of more than 3,300 U.S. employees, 59% of respondents said their personal financial concerns are causing them stress, with 57% of workers saying their finances are their biggest life stressor right now.

According to the resulting report, financially stressed employees are five times more likely to be distracted at work, and typically spend more than three hours of work time in a given week dealing with financial concerns. Ultimately, 59% of respondents said their current financial health is negatively affecting their workplace productivity.

Even larger numbers indicated that financial stress was negatively impacting their mental health (74%), sleep (74%), self-esteem (67%) and physical health (65%).

In addition, 49% of workers said their compensation isn’t keeping pace with costs.

“As expenses rise faster than income, day-to-day tradeoffs are becoming routine,” according to PwC. “Employees aren’t just feeling squeezed. They’re making difficult financial decisions to stay afloat.”

The survey found these same workers are hesitant to seek help with such decisions. For example, 33% of respondents said they are embarrassed to ask for financial guidance.

Employees who are hesitant to ask for financial help are “significantly more likely to say they’re overwhelmed by the amount of information required to manage their finances effectively,” according to PwC, which offered a series of steps to make employees more comfortable seeking the financial resources they need.

For example, the survey report suggested creating “secure, judgment-free entry points into financial education and wellness,” and providing financial coaching that’s “personal, flexible and free of judgment.”

The report also recommended focusing on financial building blocks and relevant benefits to help employees more easily navigate their financial challenges.

“Start with basics like cash flow, emergency savings and debt. Then move on to retirement planning, tax optimization and risk management to help employees develop their financial independence,” the report read. “Employees can’t focus on long-term goals if day-to-day finances are unstable.”