Back to Basics: Financial Stress – The Workplace Epidemic of the 21st Century | EAPA-SA

The work environment has changed radically over in recent years, and will continue to change at an escalating pace, as the world transforms as a result of the fourth industrial revolution.  Employers need to be aware of the ever changing risks that business will face. For example, with the advent of technology, employees will spend more time working, feeling the effects of the ‘always on’ work culture that pervades our society – and leading more sedentary lifestyles. It comes as no surprise that stress-related illnesses have increased substantially over the last few years:  in South Africa, the state of the economy, along with political, economic and financial factors means that employees are living in much more stressful times. According to a 2016 study conducted by the South African Depression and Anxiety Group (SADAG), 1 in 4 South African employees has been diagnosed with depression. 1

The work environment has changed radically over in recent years, and will continue to change at an escalating pace, as the world transforms as a result of the fourth industrial revolution.  Employers need to be aware of the ever changing risks that business will face. For example, with the advent of technology, employees will spend more time working, feeling the effects of the ‘always on’ work culture that pervades our society – and leading more sedentary lifestyles. It comes as no surprise that stress-related illnesses have increased substantially over the last few years:  in South Africa, the state of the economy, along with political, economic and financial factors means that employees are living in much more stressful times. According to a 2016 study conducted by the South African Depression and Anxiety Group (SADAG), 1 in 4 South African employees has been diagnosed with depression. 1

Financially stressed employees

It is vital for employees to be mentally healthy in the workplace.  Depression has a negative impact on productivity, decision-making, concentration and problem solving – all of which are important for productivity. More and more employees today are struggling with their finances− whether they face increasing personal debt, demanding financial commitments or a lack of being able to save for the future. Organisations can experience greater business success by guiding their employees in overcoming personal financial challenges.

Four signs of a financially stressed employee

1.     Presenteeism

If an employee is stressed, they may be distracted and show a lack of focus, running the risk of bad decision-making and the delivery of poor work quality. This could be construed as a lack of interest, but could be as a result of the inability to sleep, eat properly and live a balanced lifestyle.

2.     Increased absenteeism

Stress or having to deal with financial emergency may act to increase an employee’s absence from work.  Stress takes its toll on health and a stressed-out employee may be taking a lot of sick days.

3.     Repeatedly asking for a salary increase – or taking out personal loans

If an employee is desperate for more money, they may constantly ask for a salary increase. Or, if an employee is seen to ask for their employer to sign proof of employment documents it may be to prove that they are eligible for a personal loan. These are indicators that they are facing financial issues. What’s more, a lack proper financial planning that leads to living above their means could be causing them to get further and further into debt.

4.     Signs of being unhappy at work

It’s difficult for anybody to act rationally and calmly at work if there’s is an overload of stress in one’s personal life, outside of the workplace. Worry over financial matters can lead to irritability, anger and mood swings made worse by fatigue and sleeplessness – all of which have an overall effect on their working relationships and bring about conflict in the workplace. 2

 

How can you, as an employer, help financially stressed employees? 

Offer financial wellbeing programmes

Helping to prevent financial stress, or work through and put paid to financial issues, by investing in workplace financial wellbeing programmes that help employees to become more financially astute makes good business sense.  Providing information, guidance and training tools to help employees work towards financial stability will pay dividends in helping to reduce levels of stress.

Encourage employee wellness

To effectively manage stress, employees should look after their bodies and minds by eating well, exercising regularly and getting enough sleep. Encourage wellness programs within the office, providing the tools to help your employees establish a balanced lifestyle.

Offer employee-benefits

More than ever, employees are looking to their employers to help them achieve financial security through a range of workplace benefits. Set up saving schemes and future benefits for employees to ensure their futures are financially stable. 3

Provide debt counselling

An Employee Assistance Programme (EAP) can also be a significant benefit to employees at risk of falling into debt or struggling with their finances. Many EAPs offer debt counselling or advice services. It is important for Human Resources to regularly remind employees about the specific services available from the organisation’s EAP practitioners and how they can be of help. 4

Treat the cause – not just the symptoms

Prevention is better than cure – so the proverb says. The main thing to remember is how important it is to alleviate the cause and not just treat the symptoms of financial stress, to ensure employees are happy and productive in the workplace. At the end of the day, investing in your employees’ health and wellness on a holistic basis will have a positive effect on the organisation’s bottom line.

 

1 https://www.golegal.co.za/workplace-stress-impact

2 http://www.thesmallbusinesssite.co.za/2018/03/02/help-financially-stressed-employees

3 https://www.entrepreneur.com/article/310992

4 https://hrmagazine.co.uk/article-details/how-hr-can-help-employees-with-financial-troubles

It is vital for employees to be mentally healthy in the workplace.  Depression has a negative impact on productivity, decision-making, concentration and problem solving – all of which are important for productivity. More and more employees today are struggling with their finances− whether they face increasing personal debt, demanding financial commitments or a lack of being able to save for the future. Organisations can experience greater business success by guiding their employees in overcoming personal financial challenges.

Four signs of a financially stressed employee

1.     Presenteeism

If an employee is stressed, they may be distracted and show a lack of focus, running the risk of bad decision-making and the delivery of poor work quality. This could be construed as a lack of interest, but could be as a result of the inability to sleep, eat properly and live a balanced lifestyle.

2.     Increased absenteeism

Stress or having to deal with financial emergency may act to increase an employee’s absence from work.  Stress takes its toll on health and a stressed-out employee may be taking a lot of sick days.

3.     Repeatedly asking for a salary increase – or taking out personal loans

If an employee is desperate for more money, they may constantly ask for a salary increase. Or, if an employee is seen to ask for their employer to sign proof of employment documents it may be to prove that they are eligible for a personal loan. These are indicators that they are facing financial issues. What’s more, a lack proper financial planning that leads to living above their means could be causing them to get further and further into debt.

4.     Signs of being unhappy at work

It’s difficult for anybody to act rationally and calmly at work if there’s is an overload of stress in one’s personal life, outside of the workplace. Worry over financial matters can lead to irritability, anger and mood swings made worse by fatigue and sleeplessness – all of which have an overall effect on their working relationships and bring about conflict in the workplace. 2

 

How can you, as an employer, help financially stressed employees? 

Offer financial wellbeing programmes

Helping to prevent financial stress, or work through and put paid to financial issues, by investing in workplace financial wellbeing programmes that help employees to become more financially astute makes good business sense.  Providing information, guidance and training tools to help employees work towards financial stability will pay dividends in helping to reduce levels of stress.

Encourage employee wellness

To effectively manage stress, employees should look after their bodies and minds by eating well, exercising regularly and getting enough sleep. Encourage wellness programs within the office, providing the tools to help your employees establish a balanced lifestyle.

Offer employee-benefits

More than ever, employees are looking to their employers to help them achieve financial security through a range of workplace benefits. Set up saving schemes and future benefits for employees to ensure their futures are financially stable. 3

Provide debt counselling

An Employee Assistance Programme (EAP) can also be a significant benefit to employees at risk of falling into debt or struggling with their finances. Many EAPs offer debt counselling or advice services. It is important for Human Resources to regularly remind employees about the specific services available from the organisation’s EAP practitioners and how they can be of help. 4

Treat the cause – not just the symptoms

Prevention is better than cure – so the proverb says. The main thing to remember is how important it is to alleviate the cause and not just treat the symptoms of financial stress, to ensure employees are happy and productive in the workplace. At the end of the day, investing in your employees’ health and wellness on a holistic basis will have a positive effect on the organisation’s bottom line.

1 https://www.golegal.co.za/workplace-stress-impact

2 http://www.thesmallbusinesssite.co.za/2018/03/02/help-financially-stressed-employees

3 https://www.entrepreneur.com/article/310992

4 https://hrmagazine.co.uk/article-details/how-hr-can-help-employees-with-financial-troubles