When employees are worried about money, their companies suffer. Daily pay may be the solution to relieving this financial stress.
Financial stress in the workplace is palpable and it’s a killer for companies.
Consider these facts:
Financial stress is the #1 reason why employees quit (Source)
It costs a company an average of $4,000 each time an employee quits (Source)
More than half (53 percent) of employees report that they are stressed dealing with their financial situation (Source)
Even if they stay, they waste three hours a week or more on personal finance issues, which costs a company $2,800/year (Source)
Financial stress is wreaking havoc on employee’s lives, which in turn affects their health, their productivity at work, and their work attendance.
What’s causing all this financial stress?
According to a 2017 survey by employment website CareerBuilder, roughly 78 percent of Americans are living paycheck to paycheck to make ends meet. And nearly 50 percent have a problem taking care of a $400 emergency without borrowing money from someone, taking a costly payday loan, or incurring overdraft or late payment charges.
Since a company’s biggest investment is its workforce, if workers are under stress, the business is under stress. Employees experiencing financial stress are at risk for increased absenteeism and healthcare costs, along with significantly reduced job performance.