What is Financial HealthFor the Indian economy, one can think of financial health as one’s (or the household’s) resilience to withstand and/or absorb financial shocks while continuing to chase his/her life-goals. Inability to nurture and deal with one’s financial health gives rise to financial stress with 53%1 of employees experiencing financial stress ranging from struggling currently to being extremely worried about future status. This picture only gets murkier when one starts to ask these questions only to the blue-collared and the entry-level employees.
Why should you be worried?More than 50%1 of your employees are facing high financial stress which gets manifested at your workplace in the form of distraction, less productivity, increased sick-leaves and employee turnover. One study3 reports that financially stressed employees are-
- 2x as likely to report high personal stress
- 1.5x likely to report poor health
- Likely to lose additional 5.5 days of work annually
- 2x as likely to quit for another job with replacement costs being as high as 2x of an employee’s annual salary