Personal Financial Stress Hurts Employee Performance

Personal Financial Stress Hurts Employee Performance

By Dennis McCafferty  
from:  CIOInsight.com

Personal finance problems among a few employees wouldn't typically be your concern. CIOs and other senior managers have often traditionally taken an "MYOB" position on the subject.
But, the recent recession has hardly been typical, and it's still impacting employees on and off the job, according to a survey from PricewaterhouseCoopers (PwC).

Employees are struggling with debt -- not for big-ticket purchases but for day-to-day living needs. Many are dependent on credit cards because there's simply no other way to pay the bills, and a significant share cannot meet even the minimum monthly payment on those cards. The upshot: Financial stress has emerged as a work distraction for some. And, while you may think that your higher-paid performers are immune from these circumstances, the survey reveals otherwise.

Not surprisingly, retirement planning for many professionals is now on "on hold" for the indefinite future.

"The results clearly show that retirement is not the most pressing financial concern weighing on employees' minds," says Kent Allison, partner in PwC's financial education practice. "In addition, the financial distractions and resulting levels of stress may cause a loss of productivity and have an impact on employee health." 

More than 1,600 adults making at least $30,000 a year took part in the research - CLICK to see the slide show and statistics on financial stress on workplace performance.

Yet another study from 2009 identifies the impact employee's financial stress has on higher costs and lower productivity, for their companies....

Employee financial stress hurts company performance

BY JENNY IVY

from: BenefitsPro.com

Employees are bringing their financial issues to work, and it's affecting their employer's bottom line.

Workers' lack of financial knowledge and the distress that has resulted is leading to employee productivity drains, turnover and increased benefits cost, according to a new white paper released Wednesday by GuideSpark, a company that delivers Web-based HR software.

The study found nearly 80 percent of financially distressed employees spend time at work dealing with financial issues. Plus, more than 92 percent of employees report losing sleep over money issues and financial stress is leading to illness, absenteeism and increased health care costs.

"Employees are bringing their personal financial issues into the workplace and affecting company goals," said John Wolff, vice president of financial education, in a press statement. "Financial distress can drain 12 to 20 hours of an employee's productive time at work--each month. It is definitely a problem for employers."

GuideSpark says companies that implement financial wellness initiatives can expect a return on investment of more than 3-to-1.

Financial education in the workplace has been largely limited to employee benefit communications, with "lackluster" results, according to GuideSpark. The company cited a recent Colonial Life survey of HR managers that shows only 21 percent think their employees have a good understanding of their benefits; 5 percent think their employees don't know anything about them.

The company says employers must implement much more effective programs that "not only address workplace benefits but effectively tackle the broader issue of personal financial security and planning."

The Pension Research Council agrees. The council released a working paper this month emphasizing the importance of employer-provided financial literacy programs, especially for workers nearing retirement.

"Employers have a vested interest in their employees making good retirement choices that facilitate their transitions from the firm. For this reason, workplace financial education is one of the best places for older workers to enhance their financial literacy," write Robert L. Clark and Melinda S. Morrill, authors of the council's report. "Survey evidence indicates that participants in these programs can and do learn and on the basis of their greater understanding of their retirement programs, employees modify their retirement plans. Workers appreciate and value these programs and give their employers credit for providing this employee benefits. For employers, providing high quality programs can be a good business decision."

CLICK to download the "Research Works" PDF

The Worth Account

.... education and a practical DIY tool, all rolled into one!

The Worth Account is a perfect solution to this problem and can be one of the most beneficial "employee benefits" that a company could present to it's employees.

While financial education and programs are a good "first step" they don't provide what most people need most.... motivation and financial discipline.  They supply the "why" but not the "willpower."

This is why the Worth Account was designed with psychological tools built in.  It's almost as if the program was designed by a Harvard math geek and Dr. Phil.

The Worth Account is an online financial management system.  It functions as a financial dashboard, a financial GPS and a do-it-yourself financial coach - all rolled into one.  But besides being a simple, do-it-yourself tool... it also comes with something no other financial program does... unlimited client support and coaching.

The coaches work one-on-one with clients to insure they understand the program and can use it easily... clients report managing their financial life takes only 10-20 minutes per month using the Worth Account.

"I decided to talk live with a trainer which worked great. The trainer was knowledgeable, precise, and easy to talk with. Jake, my trainer, communicated quickly & effectively about the program and it's nuances. In an hour and a half, I was up to speed with the program and on my way!!! Doesn't get a lot easier than that!"  ... Gregory M.

Additionally, Worth Account users are improving their credit scores, paying off debt rapidly and... most importantly... staying ON TRACK with their financial goals.

The Worth Account is SO good at motivating clients to stay on track that, after the first four years of use - 95% of clients were still using the program regularly to manage their financial goals - staying on their financial plan.   Overall, clients are so successful using the system that over 20% are reporting BETTER results than initially projected in their Savings Analysis.  Clients report back...

"The program is an excellent tool for money management discipline. Sure wish this was available to me much sooner in my life. Overall, thanks for an excellent program."

...Omer & Juanita L

The average Worth Account client is saving over $120,000 and paying off ALL their debt (including a 30 year mortgage), in 7-11 years.... withOUT changing their budget.

The Worth Account has many "soft" benefits for employers as well.  Obviously having employees that are not burdened by financial stress will increase productivity, increase "pay satisfaction," lower stress related health issues and decrease risk of internal theft.  

But consider this... on the flip side... one of the best things a company can do to "lock in" a good employee is to encourage home owner-ship.  After all, an employee that is "less mobile" is less likely to be lured away with promises of slightly higher pay - especially if it means a move or longer commute.  

Because the Worth Account keeps people on track with their finances it also raises credit scores as it's eliminating debt, thus getting people ready for the responsibility of home ownership... 

"With the state of the economy and the level of consumer debt we had, we could not quaify for a mortgage.  But with the Worth Account, we're going to have our credit cards paid off and be in our new home quicker than we ever imagined... we're so excited for the future!"  

... Sarah & Bill G.

Worth Unlimited is happy to work with Employers to explain how to implement the Worth Account into their package of employee benefits.  Full support in the way of educational seminars, flyers for pay envelopes, web sites and banners for company websites... all are provided for an employer that wants to present this option to it's employees.

Please contact a Worth Unlimited Agent or Referral Partner to get more information about bringing this AWARD WINNING financial management program on board with your company... and help your employees be more successful in their financial lives!

If you don't have contact with a Worth representative yet, 

contact Sue Copening:  407-443-0348

Client info:  http://WorthClient.com

Referral info:  http://WorthPartner.com