3 Reasons Your Employees Aren’t Paying Attention At Work
Why over 1/3 of your employees are wasting 3+ hours each week on the job.
KOFE is our financial wellness program – it’s a corporate financial wellness program – and it stands for Knowledge of Financial Education.
Employers are noticing that nowadays employees are not only finding themselves with health issues, but also having a lot of problems with their personal finances. And they’re also finding that personal finances are affecting the bottom line of the company.
So employers are reaching out to Consolidated Credit more and more, looking for that corporate financial wellness program that it can add to that mix of offerings they have in their wellness initiatives. Typically we see change in things like turnover rates, production goes up, time from work to go take care of financial situations. It automatically makes happier, healthier and more productive employees.
KOFE is a financial wellness program that has different features. The online features is a portal we give to the corporation to put on their internet. Employees will have access to a lot of different tools, also a dedicated toll-free line so the employees will have access throughout the year to unlimited and free financial coaching.
Overall we see that companies are a lot more productive and employees are happier and more loyal to the company because they’re offering a lot more wellness initiatives, like our financial wellness program.
There is no shortage of diversions that your employees could be wasting time on at work, but if you think they’re only wasting time playing Pokemon Go or checking their Facebook feed, you’d be wrong. Even cat videos are a drop in the distractive bucket compared to financial stressors that pull employees’ attention away from their work at hand.
According to the CFPB’s 2015 Financial Wellness Survey, seven out of ten consumers admit that finance is the number one stress inducer in their lives. More concerning, 39% are so stressed about financial concerns that they’re spending at least 3 hours each week at work dealing with them. That’s 156 hours or more per year that each employee wastes when they could be working.
“Financial stress is crippling because it’s almost impossible to think about anything else if you’re worried about keeping the lights on or keeping a roof over your family’s head,” says Beatriz Hartman, Business Development Manager for Consolidated Credit. “Financial challenges usually come with an overwhelming sense of doom that can be tough to ignore, so even dedicated employees will be distracted by a challenge with money at home.”
Hartman goes on to explain that there are three key financial concerns that lead a worker to feel so overwhelmed that they have trouble focusing at work.
Reason No. 1: Juggling Bills
“If a worker does not have enough income to cover all of their bills and basic living expenses, the constant balancing act that it takes to stay ahead can be exhausting,” Hartman explains. “Juggling bills, figuring what needs to be paid now and what can wait, using one credit card to pay another – all of this can consume a financially stressed worker and make it tough for them to focus.”
Reason No. 2: Spiraling in a Cycle of Debt
“Credit cards are often a tool people use to stay afloat when their budget is stretched thin, but at a certain point taking on debt becomes the problem instead of the solution,” Hartman continues. “Once credit cards are maxed out some people turn to payday loans, which may provide short-term relief but often in the end they only make a bad situation worse.”
This cycle of debt is well known to the certified counselors at Consolidated Credit. Clients like Robert and Rebecca turned to payday loans during times of financial hardship, only to find themselves in even further in debt with unmanageable interest rates. Debt problems of a few thousand dollars can quickly spiral into $10,000 or higher.
“High balances to pay off combined with high interest rates create an untenable situation,” explains Gary Herman, President of Consolidated Credit. “Even if the borrower pulls it together to make payments on time every month, balances may never decrease because those payments are barely enough to cover interest charges. So they pay and pay, but never make progress. It’s frustrating and creates a situation where it can be tough to think of anything else.”
Reason No. 3: Emergency Expenses
“Even high income earners report that they’re living paycheck to paycheck,” Herman continues. “This leaves millions of household vulnerable to financial challenges that arise out of an emergency. Whether it’s an accident that leaves a family with ER bills to pay or a major home repair, one emergency can send your finances into a tailspin if there is no money in savings to cover it.”
Financially healthy employees are productive employees
When financial distractions for your employees impact your bottom line, financial wellness becomes a corporate problem. The solution is to provide tools that help employees achieve financial stability that they can maintain long-term. If you would like to explore financial wellness programs to add to your company’s benefits package, call 1-800-901-8304 to speak with one of KOFE’s financial education specialists today.