Financial Stress Impacting Performance and Retirement Savings

January 25, 2012 (PLANSPONSOR.com) – U.S. workers’ financial worries are impacting their work performance and retirement savings plans. 

A survey from the Society of Human Resource Management (SHRM), asked HR professionals, “In the past 12 months, have employees been more likely to dip into their employer-sponsored retirement savings plans compared to the previous year?” More than half (55%) of HR professionals agreed, and 17% strongly agreed. A little less than a quarter (24%) disagreed, and 3% strongly disagreed.

When asked the impact of employees’ personal financial challenges upon work performance, 22% of HR professionals cited a large impact. Sixty-one percent noted some impact, while 16% responded with slight impact. Only 2% of respondents observed “no impact” upon workers.

"The source of money woes is unsurprising, but the toll it's taking on both workers and their employers, in addition to the persistence of the weak economy, are all troubling issues," said Mark J. Schmit, Ph.D., SPHR, vice president of research at SHRM.

A closer look at the impact on work performance shows that:

•  Forty-seven percent of HR professionals noticed employees' struggle with their ability to focus on work;

•  Forty-six percent noticed issues with overall employee stress;

•  Twenty-six percent observed a negative impact on overall employee productivity;

•  Twenty-four percent said money woes are leading to employee absenteeism and tardiness;

•  Twenty percent are concerned about overall employee morale;

•  Twelve percent noticed a negative impact on overall employee health; and

•  Seven percent said working relationships with other employees are the least impacted.