Financial issues are burdensome and distracting for everyone. When one of your employees is concerned about financial wellness, your employee engagement may suffer.
Imagine living paycheck to paycheck and balancing which bills you’ll pay now, and which bills you’ll incur a late fee for because there isn’t enough money to go around. Payday is slightly out of sync with your bills. Suddenly, your financial burdens consume your thoughts.
It turns out, financial stresses are very common in the workplace. According to the 2023 PWC Employee Financial Wellness Survey, financially stressed employees are twice as likely to look for a new job.1 Financial stress may be more common than you think:
- Ninety percent of Americans say their financial considerations have an impact on their overall stress levels.2
- Almost half of Gen Zs (46%) and Millennials (47%) live paycheck to paycheck and worry they won’t be able to cover their expenses.3
Financial Stress Can Reduce Employee Productivity
If your employees are dealing with excessive financial stressors, they may find it more difficult to focus at work.
According to Morgan Stanley, financial stress can inhibit job performance. Seventy-one percent of employees reported that money-related stress negatively affects their work and personal lives. Additionally, 84% of HR leaders are worried about the impact of employees’ financial issues on productivity.4
How Companies Can Support Employee Financial Wellness
Although employers can’t completely eradicate stress from their employees’ lives, they can help alleviate financial stress and improve employee financial wellness.
Employers can offer financial wellness benefits encouraging employees to keep track of earnings and expenses, pay bills on time, save easily, budget for the future, gain financial knowledge and more.
Financial wellness benefits packages often include Earned Wage Access. When employees have greater access to their pay, they’re better equipped to avoid negative financial situations.
Good financial wellness is essential to achieving financial well-being.
Learn more about how to improve employee financial wellness.
Improve Financial Wellness With DailyPay
According to a November 2022 DailyPay User Survey, 67% of users said DailyPay has helped them reduce financial stress.5
DailyPay offers employers a way to pay their employees daily without disrupting the payroll process. DailyPay is not a loan, but rather a solution for paying employees what they’ve already earned. An employee can see how much money they have earned through an app and elect to withdraw available funds as often as they’d like. Here, the difference of one or two days could help employees get themselves out of small financial binds, and reduce financial stresses.
Ready to learn how DailyPay can help your company?
1 https://www.pwc.com/us/en/services/consulting/business-transformation/library/employee-financial-wellness-survey.html:DailyPay, 2020
2 https://community.thriveglobal.com/wp-content/uploads/2020/02/Thriving-Wallet-Research-Insights-Report.pdf:DailyPay, 2020
3 https://www.deloitte.com/content/dam/assets-shared/legacy/docs/about/2022/deloitte-2022-genz-millennial-survey.pdf:DailyPay, 2020
4 https://www.morganstanley.com/content/dam/msdotcom/atwork/state-of-workplace-financial-benefits-study-results-2022/state-of-the-workplace-study.pdf:DailyPay, 2020
5 November 2022 DailyPay User Survey:DailyPay, 2020
