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How financial worries can harm work performance

Although we have now moved on from the recession, many people feel that they have not fully recovered or recouped their losses

A number of factors can affect an employee’s performance, with these factors varying dramatically depending upon the employee’s age, their cultural values and even their gender; however, one trend has the power to affect any employee regardless of their position – financial worries in their home life. Whilst many employees strive for the perfect work-life balance and aim to keep the two completely separate, there are undoubtedly times when they collide.

According to the 2016 Employee Financial Wellness survey, many employees are now spending time at work dealing with and worrying about their finances. This could be attributed to the amount of time spent at work, which makes it difficult for employees to visit banks and contact governing bodies outside working hours.

44% of the employees surveyed stated that they felt their employers no longer cared about their personal financial wellbeing. Throughout the recession, many organisations cut employee benefits, including commissions and health care contributions; in some cases, these cuts put a higher financial burden onto the employees.

It is also now common for employees to work on zero-hour contracts and to have a minimum six-month probation period when starting a new role, both of which can contribute significantly to financial worry. Many employees feel that a more secure working environment would help them to achieve their financial goals and relieve some of their stress.

One of the most common financial worries, mentioned by 55% of the employees surveyed, was the lack of savings they have in reserve for unexpected emergencies. This lack of savings not only creates financial stress for the employee but can also affect their work attendance and performance; for example, unexpected car maintenance bills could prevent an employee getting to work, which may lead to unpaid leave and result in further stress for the employee and a reduced workforce for the employer.

37% of the respondents were concerned that they will no longer be able to retire at their planned age due to their lack of savings, which could result in a demotivated and older workforce.

It is not just work that is affected by financial strain but also people’s health and relationships. Unfortunately, this situation is unlikely to improve in the foreseeable future.

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