Here’s the proof. We’ve compiled a snapshot of some of the best research we’ve found regarding how, why and to what extent employee’s personal financial affairs, and the stress linked to that, affects their health and productivity as well as your healthcare costs, absenteeism, presenteeism and bottom line.
Go on. Take a look at this research:
Among consumers with annual incomes of R300k - R500k, debt to disposable income was just over 100%. For those earning R500k - R750k, the level was 130%, and for those earning more than R750k, the level fell to just under 120%.
Source: Study conducted by the
University of SA’s Bureau of
Market Research in 2008.
Studies in the USA
show that changing employee’s financial behaviour is actually easier than changing their diet and exercise habits.
The result? Decrease in stress and related health-care costs.
Most employees agree that January is ‘the longest month of the year’ due to receiving their pay too early in December. This invariably means staff begin the year with low morale instead of arriving back rested and full of energy.
The Money School has extensive experience creating & implementing successful Employee Financial Education programs for a wide range of clients, including some major financial services companies in South Africa.
The results of this study show that those who are financially stressed are more likely to have lower levels of pay satisfaction, spend work time handling financial matters, and be absent from work.
Stress created by major life events such as problems with money and relationships directly increased serious illness. Among the types of illness directly linked to financial woes are heart disease, ulcers, and psychiatric problems.
39% of South Africans (16 years and older) have / use credit products. 26% of these people who are borrowing, do so to purchase food and / or groceries.