Even before the global coronavirus pandemic disrupted the global economy, financial stress was already being widely reported by as many as 60% of Australian workers. Almost 50% of Australian workers spent more than three hours per week dealing with financially related issues, and the concern over having financial difficulties had increased to 71% of employees in 2019.
An AMP report found that financial stress is costing Australian organizations approximately $31.1Bn annually in lost hours due to absenteeism and employees being distracted from their work.
The stress suffered from financial concerns results in employees often feeling overwhelmed, which causes health concerns, less productivity and absenteeism from work. This negatively impacts the employee’s organization’s growth and revenue ambitions and, on average, costs an organization AUD$1,900 per employee who suffers from financial stress.
In Australia, and indeed globally, organizations have the opportunity to help lower their employees’ stress and equip them with the confidence and control to achieve their financial goals. This will generate goodwill and also have a positive impact on the company’s bottom line. Employees who feel more confident in their financial planning decisions are more likely to be more productive at work.
Intelligent technologies can help target different audiences and generational groups based on individual preferences and needs. For instance, less than half of Millennials have an emergency fund, Generation X carries the most debt of any generation, and only 42% of Baby Boomers are on track with their retirement planning.
Download our "From Financial Stress to Financial Wellness: The Opportunity for Your Business" whitepaper to learn more about this global challenge that needs global and local solutions, and the benefits of implementing a financial wellness strategy for your employees.