Recent years have had no shortage of financial challenges. From geopolitical tensions, to rising inflation, to the continued effects of the COVID-19 crisis, many Americans have faced significant financial hardships. And these events have underscored the importance of financial resilience.
Millions of Americans are already living their daily lives under financial strain. In 2022, only 31% of Americans were financially healthy.1 Most Americans were not in a position to readily bounce back from even a modest financial shock, and the workforce continues to be largely populated with individuals who have low financial resilience. This impacts U.S. businesses in significant ways.
Understanding the Business Cost of Low Resilience
Employees who are facing financial challenges—and stress—are twice as likely to look for a new job.2 And with the cost of recruiting a replacement, plus the time spent training and educating the new employee, the expenses caused by high turnover can really add up.
Productivity also takes a hit, as employees with low resilience tend to be more distracted at work (and thus more prone to workplace accidents) and less productive.2 Put another way: Worrying about money means an employee is unable to perform at their highest potential. And that has consequences for employers.