By Arrie Pieterse —

Financial stress is killing companies

Financial stress is killing companies
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Today, many employees face financial stress. They struggle with bills, debts, and aiming for stability. This burden affects productivity and well-being. So, it's vital for employers to tackle this issue.

The Reality Check: Stats Speak Louder Than Words

Let's dive into some eye-opening statistics:

  • 59% of employees are stressed about their finances, impacting work performance for 47% (PwC)
  • 72% of adults feel stressed about money, with 22% experiencing extreme stress (APA).
  • 48% of employees spend at least three hours a week at work dealing with personal financial issues (Salary Finance).

A Debt Busters money stress tracker survey conducted in 2023, which included 35,000 South Africans proved that the experience is actually far worse:

  • 78% of participants reported experiencing financial stress.
  • A staggering 94% felt that financial stress was adversely affecting their work.
  • 77% believed that financial stress was negatively impacting their health.

It's easy to realise how this level of stress is eroding company performance and even profitability. If employees are distracted, stressed, and unfocused, how is a company supposed to thrive?

Employers can make a significant difference by taking these actionable steps:

  1. Teach Them Smart Money Skills: Provide workshops, resources, and tools to boost financial literacy among employees.
  2. Help Them Plan Ahead: Beyond a salary, provide retirement funds, insurance benefits, or employer-matched contributions.
  3. Encourage Work-Life Balance: Build a supportive culture that encourages self-care and reduces stress.
  4. Talk It Out: Create a safe space for employees to discuss financial concerns openly.

Individuals can also take charge of their financial well-being with these steps:

  1. Budgeting: Create a budget aligned with financial goals and track expenses.
  2. Stash Some Cash: Build an emergency fund covering three to six months of expenses.
  3. Debt Busting: Develop a plan to pay off debts systematically, seeking assistance if needed.
  4. Invest Early: Start investing early to build wealth over time.
  5. Keep Learning: Stay informed about personal finance topics through books, podcasts, or online courses.

Addressing financial stress isn't just about being compassionate—it's also a strategic investment in productivity and success. By providing support, resources, and fostering financial empowerment, employers can create a resilient and thriving workplace.

Let's break the cycle of financial stress together and pave the way towards a brighter future.