A Hidden Expense Costing Your Business Money
The Cost of Financially Stressed Employees To A Businesses Bottom Line
A study done by Pricewaterhouse Coopers in 2017 found financially stressed employees cost the organization $328/employee a year (for all employees, not just the financially stressed).
Below I’m going to walk through how PWC gets to $328/employee.
1) PWC estimates, on average, 30% of employees are distracted by their finances at work.
2) Of that 30%, 46% are spending 3+ hours/week at work on their finances.
3) Employees spending 3+ hours/week * 3 hours * 46 work weeks in a year = total hours lost/year
4) $17.24 is your avg. skilled worker wage (may be higher based on a given job/industry).
5) Hours lost/year * cost/hour = total cost/year.
If your business employees younger people aka “Millennials,” the number is worse. The cost of a financial stressed Millennial to an employer is $431.
The difference is due to the fact more Millennials as a % are stressed about finances and of that %, they’re more willing to spend time at work figuring out their finances. See the red circles.
Employers who focus in on providing their employees programs to alleviate financial stress are going to reap significant expense savings. But also, these employers are also going to build something far more valuable – employee loyalty and trust.