Disengaged employees cost US companies an estimated $400 billion per year in lost productivity.  But why are people disengaged?

There are lots of reasons.  Leadership, culture, and distractions all have a dramatic impact on engagement.  But the biggest reason people cannot focus on their work is something we all deal with: stress.

So, why are Americans so stressed?  With the global pandemic, you might thing that physical or mental health concerns would top the list.  Perhaps even relationship challenges.  But the overwhelming, dominant cause of stress for 73% of Americans is money.

Sadly, financial stress trickles into virtually every other facet of our lives.  Not only does it sap an estimated 13.6% of annual productivity and cost employers over half-a-trillion dollars each year[1], it has a huge impact on mental & physical health, relationships, workplace safety, and turnover.

Financially-stressed employees are 6-7 times as likely to experience anxiety and depression[2].  With 75-90% of doctors visits being stress-related, it badly damages physical health.  Money stress keeps about three-in-five from getting regular exercise and getting routine health examinations.  Another 38% skip preventative health measures because of cost.  It is linked with insomnia, ulcers and digestive issues, high blood pressure, and heart attacks[3].  It increases the treatment cost of chronic diseases like diabetes.

It also makes it hard to be nice: financially-stressed people are nine times as likely to have troubled relationships at work[4].  Money is one of the leading causes of divorce.  It is even directly linked with preventable accidents at work[5].  It should come as no surprise that people with money stress are about twice as likely to be looking for a new job[6].

If having happier, healthier, more engaged employees is an organizational goal, why not start by attacking their #1 cause of stress?

For information on how to make your current compensation and total rewards more effectively reduce financial stress, visit ProsperBridge.org or email info@prosperbrige.org.

[1] Salary Finance.  Inside the Wallets of Working Americans.  Salary Finance, 2020.

[2] Salary Finance.

[3] John Hancock.  2019 Financial Stress Survey.  John Hancock, 2019

[4] Salary Finance.

[5] Meuris, Jirs and Leana, Carrie.  The price of financial precarity: Organizational costs of employees’ financial concerns.  University of Pittsburgh, 2017.

[6] Salary Finance.