Money worries are the top, most common source of employee stress, above-known stressors like family, job, and health combined, but did you know it could also affect your business?
Picture this scenario: Ade is a great employee, has the best attitude, turns in his deliverables ahead of agreed timelines, and goes the extra mile. But the cost of living is constantly rising, his car’s engine is faulty, and the rent is due. He only has N28,000 in his bank account, and now he has to figure out what to do. He’s already worked 20 days in the month but does not have access to the money he’s worked for. So he’s using public transportation, coming into work late, seeking fast cash loans or salary loans with low-interest rates, with no hope in sight. 😩
When people feel anxiety from money worries, it often affects their workplace behavior and ability to do their job well. It can also negatively impact customer relations and retention, and employee loyalty. According to research by PwC, when employees experience financial struggles, they are hardly able to “leave it at the door.” 77% of employees with financial worries admit that they spend up to six working hours a week thinking or dealing with issues relating to their finances, resulting in dampened productivity at work.
In practical terms, you could be paying financially stressed employees an entire month’s worth of salary each year to fret about money on the job. As a business owner, understanding the link between financial stress and reduced employee productivity and how to fix this could strengthen your bottom line and ultimately save your business.
Here’s how employee financial stress is costing your business money:
- Employees can’t focus on the needs of their jobs because they have to deal with outside factors, such as the cost of living, that require their full attention.
- Their mental and emotional health is directly affecting their work performance. This leads to reduced productivity and poor decision-making, impacting any business’s bottom line.
- They start to skip a day or two of work which causes problems with productivity and overall motivation to do great work.
- Studies have shown a 30% increase in loan and salary advance requests in the past year. If you must approve these loans, you might be taking on risks you aren’t prepared for.
- There’s also a significant record of a lack of engagement in activities at work.
Offering a financial benefit that helps them manage their expenses is one way to ensure your employees are well off and not an extra burden to our business.
Employees are better equipped to manage their expenses and debts with an on-demand pay solution. Earnipay partners with employers to offer employees on-demand access to their earned pay. Meaning employees can get up to 50% of their money in their bank accounts at any time before payday. This helps them stay within budget and avoid payday loan cycles.
You can integrate Earnipay into your existing payroll process at ZERO cost, and it only costs employees a flat processing fee between ₦250 – ₦1000. Employees also gain access to financial wellness resources to help them better manage their finances.