“The impact of financial stress on people’s mental and physical health is well-established, but few studies have examined how this can affect our relationships and our social health, Employers need to recognize that when workers are stressed about their finances, this carries over into all aspects of their well-being, which ultimately affects their performance and engagement at work.” Marthin De Beer, founder and CEO, BrightPlan.
You can be employed and still stressed financially. 5 ways to cope
You don’t need to be unemployed to be stressed financially. The recent Wellness Barometer Survey by BrightPlan, a financial wellness benefits provider, found that 92% of employees are stressed about their finances. BrightPlan calculates this anxiety is costing employers close to $200 billion annually in lost productivity. Survey respondents included 1,400 US-based knowledge workers, a mix of C-suite, HR and employees.
If your financial anxiety is impacting your job, know you’re not alone. Both you and your employer benefit if you can reduce your stress. Here are 4 ways to cope:
1 – Take advantage of company resources
Check with your HR department on what benefits are available to help you with your finances. They might offer workshops to help you maximize your existing benefits like your flexible spending account or retirement plan. You might have access to an EAP (Employee Assistance Plan) hotline, where customer representatives can point you to additional resources. Some companies bring in outside speakers for Lunch & Learns on different topics, including personal finance tips. If your company has employee resource groups, these groups might have some finance workshops on the event calendar (or you can suggest it!).
2 — Build good financial habits
The Wellness Barometer Survey found that only 18% of respondents have basic financial literacy. 85% carry debt and 35% have little to no emergency savings. If you see yourself in any of these financial traps, you can help yourself even as you look to your company for support. Increase your financial acumen for free with helpful books from the library (here are three titles to start). Put any debts on autopay, and if you’re already taking care of the minimums, add a few extra dollars to pay them off faster. Or add the extra dollars to your emergency savings if they’re low. Yes, even though we’re in the middle of the year, you can ask for a raise to get those extra dollars. Or look into boosting your passive income outside the job.
3 — Ask for what you need
One optimistic finding from the Wellness Barometer Survey is that 53% of leaders indicate that supporting their employees’ holistic well-being is a top priority and 95% believe they should provide more financial support. Help your company leaders help you by giving them ideas for the financial support you want. Are there speakers or workshops they could host? Is there training you want to see? Do you have ideas for benefits the company could add?
4 — Develop external support
Your money is too important to only rely on your current employer. Besides, the Wellness Barometer Survey found that only 63% of employees trust HR and upper management – a drop from 83% in 2022! If you’re not sure your company can or will help, then look to mentors outside for guidance. It’s always smart to nurture contacts outside your company, anyway, to ensure your network isn’t too insular. Most people know someone who’s good with money – they will likely be flattered you have noticed and happy to give you some advice.
5 - Schedule time to focus on finances on an ongoing basis
With financial stress costing $200 Bn in productivity, it behooves you to keep this stress at bay. Get on your calendar right now and make an appointment with yourself each month or every other week with the subject, My Money (or whatever will prompt you to devote that time to your finances). This way, you dedicate time in advance, on an ongoing basis and hopefully you don’t just override these time blocks. Then you can use the time to check in with your money mentor, read finance books or blogs or check in with HR on upcoming training and other resources. If you already have a set date with yourself to pay bills or other money tasks, then tack on extra time in that session to invest in your long-term foundation.
Building a strong financial foundation is part of playing good defense for your career
The job market uncertainty means you have to play good defense and protect your career, and a strong financial foundation – low or no debt, healthy savings, knowing what resources are available – is a part of that. Minding your money doesn’t take time away from your career, but actually adds to it. Your employer benefits from your increased productivity. You benefit from feeling less stress and having a cushion to rely on if your job is eliminated or you decide to leave for a new role (job search costs money!), business launch or other career change.
