How to Quantify the Impact Financial Stress is Having On Your Business
We all know by now the statistics about financial scarcity and employee financial stress in America, as well the resulting cost to US employers of financially stressed employees in terms of lost productivity from presenteeism, absenteeism, health care costs, and employee turnover. Almost every month, a new study or report is published highlighting the number of Americans living paycheck to paycheck, struggling to save for emergencies, and saving too little for retirement.
Research has shown that financial stress and its impact on employees can result in a significant cost to businesses. Some experts estimate that these combined costs can total as much as 15% to 20% of a company’s total compensation paid to its employees. Reducing these events and their associated costs even by 5% to 10% can result in considerable cost avoidance and cost savings improved productivity and increased productivity.
But now there’s growing evidence that since March of 2020 that COVID-19 is having a serious and constant impact on employee’s mental health, further exacerbating the financial impact on employer’s bottom lines.
The American Journal of Managed Care estimates that nearly seven in ten employees feel the COVID-19 pandemic is the most stressful time of their entire professional career. 88% of workers reported experiencing moderate to extreme stress over the past two months. And, among those reporting stress, 62% noted losing at least one hour a day in productivity and 32% lost at least two hours a day.
The Society for Human Resource Management (SHRM) confirms that financial stress, now aggravated by COVID-19, is the leading cause of lost productivity, unplanned absences, lower job performance and greater distractions among employees.
How can you quantify the impact?
HOW TO QUANTIFY THE IMPACT FINANCIAL STRESS IS HAVING ON YOUR BUSINESS
Let us calculate the impact financial stress is having on your business.