Employee Engagement, Finances, and Performance: Are They Related?

More than 40% of workers experience weariness and sleep disruption due to financial stress. Nearly 80% of American people, according to a survey, find it difficult to sleep because of worries about paying daily bills, retirement savings, and medical expenses. Sleep-deprived employees may have trouble thinking clearly and processing information.

Some experts believe that an employee's financial difficulties may impact their work performance. Employees with financial difficulties may frequently worry continually, which negatively impacts their professional lives. This contributes to increased employee stress, workers' inability to concentrate, absenteeism, engagement, and delay. As a result, businesses waste more and more of their team members' working hours.

How do Finances Impact Employee Engagement and Performance?

Given the standard issue, it is clear that experiencing financial stress is not just a result of receiving inadequate compensation. It has more to do with financial literacy, financial resilience, and a variety of other skills that most workers lack. The following are the essential factors in how finances can significantly impact employee engagement and performance:

Absenteeism

It has been established that sleep loss caused by financial stress has an impact on absenteeism. This is because sleeplessness is a common side effect of stress, and financial worry is no exception. Financially stressed employees have been found to miss twice as many days of work than their coworkers. However, they could still be missing even if they arrive at work. The employees frequently arrive late.

Poor Concentration

Employees under financial hardship may not give their jobs their full attention. For instance, this can prompt employees to look for safe solutions during work hours to the financial hardship they are now experiencing. A single error can directly result in life losses in a steel mill, which is an inherently dangerous working environment. Such an outcome would be terrible, and the harm would be irreparable.

Poor Health

It is well known that stress can lead to physical health issues. Particularly financial stress can lead to health problems, including hypertension, heart problems, and headaches, among other conditions. Unfortunately, this complicates the cycle because the physical discomfort necessitates higher healthcare or recovery costs. More sick days will be required from these employees.

Loneliness

An irritable person is not enjoyable to be around, especially if they are unavoidable, like a supervisor or teammate. Financial stress can make people act in ways that are unkind, impatient, or even aggressive. This creates a toxic work environment that hurts synergy. As a result of poor communication, there will be less cooperation and inefficiency.

Conclusion

Poorly managed finances can not only greatly impact employee engagement and performance but also significantly impact one's future job and employment. Finances can impact one's life, health, and behavior in numerous ways, some of which are also mentioned above. If you require more in-depth information or counseling regarding better financial management, you can join our Business Finance Coaching Program to learn directly from the experts.