How Financial Stress Impacts Public Education Faculty and Staff at Work

Everyone experiences financial stress at one time or another. The American Psychology Association’s (APA) 2022 Stress in America report finds that 65% of respondents cited money as a significant source of stress—the highest rate since 2015.¹

For public education faculty and staff, a notoriously underpaid profession, stress about money is par for the course. Even in areas where teachers earn well above the national average, they struggle to keep up with their finances.² This financial instability leads to stress that can significantly affect their health, job security, and can even affect the students they teach.

Below, let’s look at how financial stress affects public education employees, the cost of financial stress for employers, and how organizations can support employees’ financial wellbeing.

How does financial stress affect employees?

While stress can take a toll on your health, stress caused by financial issues can be especially harmful to your mental and physical health. Symptoms of financial stress can include:³

• Increased irritability
• Anxiety
• Mood swings
• Appetite changes and stomach issues
• Muscle tension or pain, including headaches
• Fatigue
• Sleeplessness
• Unhealthy coping behaviors such as overeating or drug and alcohol abuse

Without support, these symptoms can worsen and contribute to more persistent anxiety, depression, and even thoughts of suicide. Additionally, employees with financial stress tend to delay health care due to cost.⁴ While this may seem like a smart way to reduce costs, delaying medical care leads to worse health outcomes and higher costs, which can cause even more stress.

Beyond the impact of financial stress on your health and wellbeing, it can also negatively affect your personal and family life, outlook on life, and job. In the workplace, the symptoms of financial stress can be subtle and aren’t always easy to recognize. However, there are a few clues employers can look for to know if your employee is financially stressed:

• Decreased morale
• Withdrawn or unsociable
• Absenteeism
• Presenteeism
• Poor quality of work
• Declining productivity levels
• Short temper

The real cost of financial stress for public education employers

In addition to the health and personal consequences of stress about money, a whopping 78% of employees with high financial stress say it impacts them at work.⁵ And employers agree—four out of five employers say their employees’ personal financial issues are impacting job performance.⁶ However, fewer than one-third of workers have access to benefits that can help them with financial needs.

Finance-related stress impacts every area of an employee’s life but it also impacts the organization’s bottom line—so employers need to understand the true cost of financial stress. The cost of employee stress is currently estimated to cost employers $300 billion annually.⁷ This number results from high turnover, increased healthcare costs, and lower productivity. Let’s look a little closer at each of the cost factors:

• High turnover. There’s a correlation between employee financial stress and higher turnover. Employees struggling financially are two times more likely to look for a new job opportunity with a higher salary or more affordable healthcare benefits.⁸
• ‍Increased healthcare costs‍. When employees are stressed about finances, their health can be greatly impacted. As we mentioned earlier, stressed employees are more likely to use harmful coping strategies like overeating, smoking, drinking, or drug use. They also tend to delay medical care in an attempt to save money—though this actually costs more for both them and their employer in the long run.
• Lower productivity. 49% of financially stressed employees spend three or more hours each week dealing with financial issues while at work.⁹ It’s no wonder productivity decreases as financial stress increases. Not only do financially stressed employees lose almost one month of productive workdays per year due to a lack of focus and motivation. These employees may also make more mistakes because they’re distracted and not thinking clearly. Distraction costs a company up to 10 times more than absenteeism, on average.¹⁰ Overall, the financial stress of workers is costly to their employers.

How to address employee financial stress in the workplace

The good news is that public education employees want help in their financial lives. As an employer, you are in a position to support them. When companies support the financial health of their employees, they are likely to be more productive, experience more job satisfaction, and stay with their employers longer.

It’s essential to provide access to a comprehensive financial wellness benefit that provides tailored support to your employees’ needs. Uprise Health’s EAP offers financial support resources, along with support for childcare, legal issues, mental health support, and resources for other work-life needs—all in a one-stop platform. Members also get expert support from live care navigators who can answer questions, direct them to resources, and help them find an available therapist.

These features provide a member-centric experience, make it easier to get care quickly, and give your employees the resources they need to reduce financial stress and stay healthy. To learn more about how Uprise Health can support higher education, book a demo today.

References

1. https://www.apa.org/news/press/releases/stress/2022/infographics-march
2. https://journals.sagepub.com/doi/full/10.1177/2332858419879439
3. https://www.stress.org/income-loss-financial-stress-and-covid-19
4. https://www.verywellmind.com/understanding-and-preventing-financial-stress-3144546
5. https://s3.amazonaws.com/cfsi-innovation-files-2018/wp-content/uploads/2019/05/24163214/FHN-MorganStanley-Infographic-FINAL.pdf
6. https://www.ifebp.org/bookstore/financial-education-2016-survey-results/Pages/financial-education-for-todays-workplace-2016-survey-results.aspx
7. https://www.uml.edu/research/cph-new/worker/stress-at-work/financial-costs.aspx
8. https://finance.yahoo.com/news/survey-reveals-americas-most-financially-130000008.html
9. https://www.pwc.com/us/en/industries/private-company-services/library/financial-well-being-retirement-survey.html
10. https://www.ehstoday.com/safety-leadership/article/21918281/presenteeism-costs-business-10-times-more-than-absenteeism