Pittsburgh-based PNC Bank has found that one unexpected casualty of inflation is employee productivity.
In a recent survey of employees and employers, PNC Bank found that employee stress caused by inflation is causing them to be less productive on the job. The bank’s latest report, Financial Wellness in the Workplace Report 2023: What Employees Want (and need), surveyed 1,000 workers from companies with more than 100 employees, and 500 employers from companies making more than $5 million in annual revenue. The results showed that both employees and employers found that worker stress about personal finances has negative impacts on the workplace.
Regardless of the industry or demographics, seven in 10 employees said they are stressed about their personal finances, and 63 percent say they are living paycheck to paycheck. Nine out of 10 said they are negatively affected by inflation and that inflation has affected their ability to save money and cover basic necessities. Three quarters of employers said their workers’ financial stress is negatively impacting their business.
“It’s clear that both employers and employees are seeing and feeling the repercussions of financial stress,” Kaley Keeley Buchanan, senior vice president and head of PNC Organizational Financial Wellness, said. “We believe these survey findings offer business leaders important insights that point to the value of investing in employee financial wellness benefits that could help to balance the needs of their workforce with the financial realities of their businesses.”
Nearly half of the employees surveyed (43 percent) agreed that worrying about their personal finances was impacting their job. Employees reported spending more than 150 hours annually worrying about their finances. Almost all of the employers (96 percent) said providing employees with financial wellness benefits contributed to worker retention.
The report said employers should consider offering financial wellness benefits – like free sessions with a financial advisor or matching retirement fund contributions – to help their employees and increase employee retention.
However, only 15 percent of employers reported providing that access to financial education and counseling tools to their employees.
“These findings clearly underscore that both employers and employees are concerned about money, inflation, and potential recession – but the two groups are not always aligned on benefits-related priorities,” Buchanan said. “PNC’s goal is to provide our clients with industry insights, tailored solutions, and customizable programs to help them, as employers, improve overall employee financial wellness and create a more productive and confident workforce.”