Employee Debt And The Corporate Environment: How Employees’ Financial Matters Have An Effect On Their Work Productivity And Work Relationships

Personal debt is on the rise, and worries over finances continue to top the lists for the most stressful situations. With over 59% of Americans often worried about financial matters, according to a national survey by Money magazine, this could have disastrous effects on America’s corporate and business world. Read on for more tips on what business can do to help their employees as well as increase their bottom line, and also how you can get out of debt.

SAN DIEGO (PRWEB) March 22, 2006 -- Stress is predicted to cost businesses $100-150 billion annually. That is a staggering figure, and one you might not initially suspect. Upon further investigation, since stress has many sources, not just one source point, stress influences most everything in our daily lives – especially our professional lives. With over 59% of Americans often worried about financial matters, according to a national survey by Money magazine, this could have disastrous effects on America’s corporate and business world.

One indication that financial stress is on the rise is the number of personal bankruptcy filings, which until the laws recently changed, continued to increase. From 1980 to 2004, bankruptcy filings went from approximately 250,000 to 1.5 million. In 1996, bankruptcy filings hit the 1 million mark. With so many people worried about their finances, life satisfaction in the personal and work arenas can be negatively impacted by these financial concerns.

The negative effect of stress in the workplace

Stress can eat into company profits, stunt a business’ growth and reduce worker productivity. Workplace stress is having a profound impact on the American workforce. Consider the following statements and statistics:

Fact One: Personal finance problems are the number one personal issue causing stress in the workplace.

Nearly 40% of U.S. workers experience so much stress over personal finances that their productivity suffers.

Fact Two: Research shows that workers waste at least 20 or more hours of company time a month thinking about and dealing with personal finances.

Research shows that workers spend only 49% of their time focused on their company’s key priorities.

Fact Three: Research indicates that stress over personal financial matters reduces the overall satisfaction in our work lives.

This overall reduced satisfaction can result in reduced productivity and stressed relationships between employees. Also, if we are unhappy, these concerns over personal finances could “spillover” into our negotiations and relationships with our co-workers and supervisors.

Fact Four: It is shown that if an individual has personal financial or money management issues, the individual will blame it on under-compensation from the employer rather than his or her own money management skills.

Research shows that if we feel we are under compensated, we make up for it by adjusting or reducing our work productivity to match our perceived under-compensation. Also, if we are unhappy, these concerns over benefits and compensation affect our relationships with co-workers and supervisor, as well as the work schedule.

Fact Five: Financial problems, such as bankruptcy and deepening debt and the inability to pay bills, is a severe strain, like a death or divorce.

With one satisfaction in life being affected, like financial difficulties causing strain, the “spillover thesis” states that dissatisfaction can cause more dissatisfaction with other life elements.

What can we do?

Many statistics say that with fewer financial concerns, our overall life satisfaction would be up by 30%. Improved life satisfaction would increase work productivity as well as marital and family relations. Better financial management can also help and will give the individual a stronger sense of financial well being which will ease this stress. Stronger financial management skills could increase work productivity, improve personal health and support better family and work relationships.

Employers spend significant amounts of their resources each year on employee exercise programs and fitness centers, mental wellness and other educational programs – yet only a small percentage ever think about their employee’s financial wellness. Many consultant companies as well as in-house human resource departments are now finally taking note of these statistics and offering workshops to their employees to help them become financially well.

For more information about credit counseling, and to get the facts about their services, please visit www.debtfreeamerica.com or call toll-free at 1-888-268-2626. Financial advisors at Debt-Free America are available to discuss your budget, expenses, and other financial matters with your employees at no cost. They have had years of training and education in the budgeting and credit card industry and are available to use as a free resource.

WHO:      

Debt-Free America

WHAT:   

Debt & Stress Over Financial Matters: The Effect On The Corporate & Business Environment
   
How To Cope With A Deepening Debt & Reduce Your Stress
      
WHEN:   

Interviews are available immediately and ongoing

WHERE:   

In-studio or phone interviews with local Debt-Free America counselors

Debt-Free America is a 501(c)3 non-profit, community service organization offering confidential and professional credit counseling, debt management programs, and financial education to consumers nationwide. Debt-Free America is dedicated to providing FREE services to help financially distressed families and individuals effectively manage their personal finances. Debt-Free America is also dedicated to giving back to their community by volunteering, sponsoring non-profits and in their seminar messages. The Board members and operations staff have a long-term commitment to helping anyone in debt crisis, and even those not in a debt crisis. Debt-Free America has been in the business since 1997 and is now serving over 16,000 clients nationwide.

###