Whether you’re an employee or a business owner, financial stress can take a toll on businesses and home life.
In a recent US employee survey by Pricewaterhouse Coopers (PwC), financial stress is at its highest level in five years. Workers now face more financial burdens and increased debt. In fact, over half (52 percent) are stressed about finances; 45 percent relay increasing stress over the past year—especially millennials.
Although energy costs are lower, salaries barely meet the rising cost of living. As employees feel less than confident about their finances, budgets continue to stretch and strain. The housing market has only moderately improved, continuing to depress home values to pre-recession prices. And with recent volatility in the stock market, employee confidence continues to fall. Is it any wonder?
Several factors are affecting financial concerns:
- Millennials are burdened by student loans.Facing greater financial stress, workers impacted by student loan debt are less productive at work. They find it difficult to meet household expenses and aren’t confident about retirement planning.
- Workers are saving less for retirement. Employers are concerned about employee retirement savings. By saving less for retirement, workers are postponing retirement.
- Financial stress impacts productivity at work, relationships and health. More employees are spending more time at work, dealing with their finances. This not only lessens their overall productivity, it also affects life outside of work. Financial distraction and worry impact work and home life, as well as overall health.
- Employers, pay attention to your employees’ financial wellness. Only 44 percent of workers surveyed believe their employer cares about their financial well-being, However, more than half of millennials (54 percent) stated that their loyalty to their employer is influenced by how much their employer cares about their financial well-being.
Is there any good news?
Yes. Now is the time for both workers and employers to take positive steps forward. Whether you’re concerned about retirement savings or overall financial planning, give Orcutt & Company a call. We can help.