Organizational Financial Wellness Strategies for Hourly Workers

Hourly workers make up over half the workforce and the majority of these workers are considered financially insecure. This is even more prevalent amongst the youngest hourly employees with nearly all Gen Z employees reporting financial stress and three-quarters saying this stress impacts their physical and mental health.¹

These financial challenges can have a direct impact on job performance and your bottom line. Poor financial wellness can lower productivity, reduce focus and impact overall effectiveness at work. It can lead to more stressed employees and a less productive workplace. And that isn’t good for either the employee or their employer.

Proactive organizations have a role to play. With a plan in place, they can help to foster greater financial wellness among their hourly employees – reducing their personal financial stress so they can bring their whole selves to work and focus on the job at hand. This in turn can lead to greater productivity in the workplace. It’s a win-win for both employees and organizations.

Three Ways the Financial Wellness of your Employees Can Impact your Bottom Line

Financial stress among hourly workers can impact your organization in a number of ways. Let’s focus on three: lost productivity, lowered focus and presenteeism.

Financially Stressed Employees are Less Productive

Companies are losing $500 billion per year due to employees’ personal financial stress.² This is a trend that can impact organizations worldwide, regardless of their size. Additionally, when employees are absent due to financial stress, it only adds to the productivity decline.

Financially Stressed Employees are Less Focused on the Job at Hand

Employees spend almost 20 business days annually distracted at work due to money concerns.³ This equates to some organizations paying hourly employees almost $4,000 a year for time spent worrying about personal finances. If even part of this amount were instead invested in a more effective financial wellness program, it could lead to less money worry at work in the first place.

Financial Stress can Lead to Presenteeism — Which Can Cost More than Absenteeism

Over $150 billion in productivity alone was lost in a single year when employees came to work while stressed.⁴ Financially stressed employees may find it challenging to fulfill their responsibilities effectively – an example of presenteeism - which can lead to increased costs and declined productivity for the organization. In fact, it can cost more than if they didn’t show up in the first place.

To learn three steps to start supporting the financial wellness of your employees, view our Organizational Financial Wellness Strategies for Hourly Workers Guide.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

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¹ Global Payments, "Employee Financial Health Benefits for Hourly Workers," May 8, 2023.
² Personal Finance Employee Education Fund, “Panic Attack: Worker Financial Stress Costs Employers $500 Billion Annually,” March 23, 2019.
³ Association for Financial Counseling & Planning Education, “Financial Stress and Absenteeism: An Empirically Derived Model,” accessed March 11, 2023.
⁴ Forbes, "Why Presenteeism is Bad for Business (and How to Manage It)," November 8, 2023.