Financial stress impacting on employee productivity
Economic stress and financial wellness are major concerns for employees all across the world. With living costs and work pressures closing in on some, a new study has revealed this is contributing to more absenteeism and decreased productivity.
The US survey from finance company FinFit polled 250 business owners and professionals on their views about the challenges facing employees and how they impact on their performance.
Nearly three-quarters (71 per cent) of respondents said their employees are living payday-to-payday due to the slow economy and inflation. As well as this, 86 per cent said this was leading to less production, more distraction and an increase in workers taking time off work.
President of FinFit David Kilby explained it is difficult for employees to concentrate on work when they are worried about how they are going to pay their bills or cover unforeseen circumstances, but business executives can help.
"We are seeing more employers recognising that this is a real issue and as a result, starting to think about possible solutions," he said.
Close to four-fifths (78 per cent) of executives said their companies don't offer any lending program to assist employees if they encounter financial emergencies. Nearly half of them believe this type of program would support employees better and would enable them to be more productive and concentrate on their daily tasks.
As well as establishing a support program for employees, businesses could also consider investing in sufficient payroll software. In tough economic times, when employees are relying on their wages in their accounts on the day expected, this is a good way of ensuring the process never breaks down.
Payroll software streamlines the system which reduces paper-based processes and data entry where easy mistakes can occur. This way, employees are always paid on time and can be at their most productive when at work.