Financial precarity—or being in a precarious financial position—is the most costly item that doesn’t show up on a company’s balance sheet.  U.S. businesses are losing $500 billion per year[1] due to personal financial stress.

The statistics are getting even more compelling.  59% of U.S. employees now identify money as their top cause of stress—more than all other causes combined, and nearly four times the second place stressor: their job.[2]

Financial stress has been linked to post-traumatic stress disorder[3], substance abuse disorder and suicide[4], and mental health disorders.[5]  These problems are particularly prevalent among millennials.

Forgetting about culture and profit for a moment, if the mental health of your employees is a priority, this issue must be addressed.  One of the problems is that people don’t want to receive advice the way they used to.  57% of employees want to make their own decisions and have someone validate that decision.[6]  Not only do we need to proactively address the issue, we need to do it in a new way that is compatible with what people want and incompatible with the financial services model.

Financial wellness is a buzz word and about half of employers are now offering a service to their employees.  The problem is that it’s not working.  Financial stress is increasing even as wellness programs proliferate.

Employees need more than education and an app.  They need a partner that will help move them from intention to action and make the process to move from precarity to security easy, comfortable, and even enjoyable.  Contact us to learn more about how we can deliver lasting financial change and systematically and measurably eliminate the causes of financial stress.

[1] The Employer’s Guide to Financial Wellness 2019. Salary Finance (https://www.salaryfinance.com/us/blog/half-of-us-workforce-suffers-poor-mental-health-due-to-money-worries/).

[2] PwC’s 8th Annual Employee Financial Wellness Survey: 2019 results (https://www.pwc.com/us/en/industries/private-company-services/library/financial-well-being-retirement-survey.html)

[3] Payoff Science Team Study. April 2016 (https://www.businesswire.com/news/home/20160420005504/en/Payoff-Study-Finds-1-4-Americans-1).

[4] Alcohol and Drug Misuse and Suicide and the Millennial Generation — a devastating Impact. Trust for America’s Health and the Well Being Trust. June 2019 (https://wellbeingtrust.org/wp-content/uploads/2019/06/TFAH-2019-YoundAdult-Pain-Brief-FnlRv.pdf?utm_source=STAT+Newsletters&utm_campaign=d90ea217be-MR_COPY_01&utm_medium=email&utm_term=0_8cab1d7961-d90ea217be-150444909).

[5] “Lonely, burned out, and depressed: The state of millennials’ mental health in 2019,” Business Insider. October 10, 2019 (https://www.businessinsider.com/millennials-mental-health-burnout-lonely-depressed-money-stress).

[6] The Employer’s Guide to Financial Wellness 2019. Salary Finance