Money worries impact office

Plenty of Americans struggle with money. When they do so on the job, employers apparently pay the price with eroding productivity.

Global consultant Mercer recently estimated that workers spend roughly 150 hours annually on average, nearly three hours a week, worrying about money issues. This could be costing employers up to $250 billion in lost wages, Mercer said.

Whether those numbers are exaggerated or not, they do suggest the problems associated with financial literacy are more widespread than commonly thought.

Employer-provided financial wellness or well-being programs, which are distinct from more traditional workplace benefits including 401(k)-style retirement plans, can help. Such programs often provide budgeting assistance and guidance tackling specific problems such as studentloan repayment, credit management, learning about non-retirement savings vehicles and gaining access to loans.

The study, conducted in 2016 but publicized in more depth this month by Mercer, included feedback from more than 3,000 workers.

Respondents said they spent 13 hours a month on average worrying about financial matters, though the median or midpoint figure was considerably lower, around five hours a month. The survey didn’t ask workers how they actually spent work time worrying about finances — whether in seeking advice from co-workers, checking online for information, taking time off from work to deal with problems or in other ways.

Money issues that people worry about, according to the study, include monthly expenses, saving for retirement, managing credit-card debt and planning for or meeting long-term care costs.

The study made a distinction between employers’ simply supplying information compared with actually helping them gain confidence in handling financial matters. People who lack confidence or courage often are paralyzed from taking even basic steps that could improve their finances, according to Mercer. Employers can encourage these workers to take small actions that build confidence gradually.

Aside from improving productivity, the programs also can help employers by making it easier to attract and retain employees.

“If you and your See WILES, Page 4E