3 Ways to Stop Employee Financial Stress From Costing Your Business.

Stress is a big part of business owners. No matter how hard they work, there will always be times when they’re stressed out and worried about the future.

While stress is a natural, and even expected, part of running a business, it’s also something that could be costing businesses a lot of money and reducing the productivity of their employees.

A recent study from the State Street Global Advisors in Boston found that 61% of workers are moderately to severely stressed about their finances. Another study from the Consumer Financial Protection Bureau found that up to 81% of workers think that financial problems hurts productivity, and 39% spend at least three hours each week worrying about financial matters while they’re at work.

According to the American Psychological Association, stress is a big problem for most employees in America.

“65 percent of Americans cited work as a top source of stress. Only 37 percent of Americans surveyed said they were doing an excellent or very good job managing stress.”

If that’s not enough to worry, the American Psychological Association has another little piece of data: Street costs businesses in the US approximately $300 billion dollars per year.

Stress results in reduced productivity, increased absenteeism and high turnover reates. All of which have a negative impact on you and your business.

For the small business owner, this is all the more important, as they’re the ones who see the ups and downs of the company’s performance on a daily basis, as well as the fact that they’re often responsible of fixing the problems that arise. Small business owners also know their employees personally and can see the immediate impacts of financial uncertainty at play.

This information isn’t meant to add more stress to the small business owner’s life. Instead, it’s meant to show that stress does have negative consequences in small businesses.

By making a few changes, it’s possible to reduce the personal levels of stress employees are facing and thus, save money in the long run.

Here are a few tips for reducing financial stress in the workplace:

1. Start a 401(k) for your business and encourage employees to contribute. Much of the stress around finances may stem from long-term planning, or a lack thereof. Offering not only the option of a 401(k), but education to your employees on how it works should make them more comfortable that they are at least building a nest egg for the future. Right now, only 28 percent of small business owners offer a 401(k), according to a SurePayroll Small Business Scorecard survey.
2. Provide financial education. The personal development of your employees is an important component of your employees’ professional growth. As a business owner, it’s likely you have financial people you work with – advisors, accountants. Ask them to come to your office for a lunch and share tips with your staff on budgeting, investing and taxes. This sends the message to your team that you care about their financial well-being, as well as giving them tools to improve their situation.
3. Remind them of the company’s successes. It’s easy to get caught up in the risks and potential pitfalls your company is facing. However, it’s important not to dwell on these things with the people who work for you. You want to create an atmosphere of positivity, success and momentum, so they feel good about working there. Remind them of the company’s growth, profitability and client acquisition as often as you can, so they know they’re in a good place.

Small business owners can’t be held responsible for the financial health of every employee, but they can create an environment that lessens he impact of financial stress on their working lives.