Just this week, it was revealed that more than two-thirds of employees cite that the cost of living is outpacing growth in their salary and wages, which presents a rather concerning reality for Americans across the country. Perhaps it is time that employers take the time to assess the value of their workforce’s mental health.
Financial Stress Is Rife Among the US Workforce… And It’s Only Getting Worse
Moneyzine’s research unearthed that more than 3 in 5 employees are actively stressed about money, with 1 in 2 employees stating that it is their biggest stressor in life. The quantity of employees experiencing these stresses is unfortunately only increasing too – with a seven percentage point increase in the number of full-time employees citing that their compensation isn’t keeping up with the cost of living.
Employees aren’t the only people concerned that salaries aren’t adequate enough to cover the rising costs either; it was found that 80% of Chief HR Officers (CHROs) are concerned that wage growth will not keep up with inflation.
Financial Stress Hinders Performance at Work
Not only does financial stress impact the individual experiencing the turbulent time, but the company the employee works for suffers as a direct result. Financially stressed employees are 18% less energized to work and 14% less likely to feel as though they are below – two very important attributes of a productive employee. In fact, employees are self-aware of the negative impacts of their financial stress, with 1 in 3 admitting it negatively impacts their productivity and 44% estimating they lose at least 3 hours of work every week due to being distracted.
Employees Financial Stress Ultimately Costs Employers
So, let’s do the maths: 60% of workers are financially stressed, and 44% of those workers lose at least 3 hours of work per week. With the average hourly wage standing at $33.82, it means that roughly 1 in 4 workers cost their employer $101.42 per week in time lost to money worries. This number rises to $405.84 per month and $5273.84 per year.
When looking at this from a company-wide perspective, these figures will really shock you – an organization that employs 100 people currently spends $131,846 each year on financial stress; an organization with 1,000 workers spends more than 1.25 million!
A Raise of $2.50 per Hour
If US employers were to give every worker whose financial stress is causing productivity losses a raise of $2.50 per hour – they would actually gain $13.92 profit per worker each week in terms of productivity. At an organization with 100 employers, this would equate to roughly $348 gained each week and more than $18,000 across an entire year.
It seems like increasing wages is the key to saving money and increasing productivity.
The IRS Adjusted Its Tax Income Brackets — Are You Ready?
Have you heard that the IRS adjusted their tax brackets? The reason behind the IRS adjusting its tax income brackets for next year is tax consolidation, which aims to simplify the tax code. You might have already heard about it.
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There are endless sources of inspiration for travelers nowadays, and with pandemic travel restrictions having been largely lifted, you can explore nearly every corner of the world. However, there are some places that you are better off avoiding- dangerous cities.
20 Legal Things That Will Probably (Hopefully) Be Illegal In The Next 20 Years
In today’s modern world of legalities and regulations for everything, there are certain things that people are eager to see illegalized in the next two decades, despite the complex legal landscape or things people think will become illegal in America.
15 Things That Are Really A Scam But Have Been Normalized By Society
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10 Crazy Myths About Women Men Actually Believe
In our society, many myths and stereotypes exist about women. Unfortunately, some men still believe in these myths, even though they have been debunked time and time again. Here are some of the crazy myths that men believe about women.