High hidden costs for employers due to financial uncertainty among employees
9 Apr 2024
5 min
Financial uncertainty among employees has far-reaching consequences for business performance. This is evident from research conducted among Dutch employees in the past months on behalf of financial planning platform Equip.
The research shows that as many as 45% of employees feel uncertain about their financial future, fueled by the skyrocketing inflation and the tight housing market in recent years.
This financial uncertainty has a major impact on their mental health. For instance, 32% of burn-out complaints are attributed to personal finances.
Moreover, this uncertainty is a key reason for changing employers: staff turnover is explained by financial reasons for 41%, making it the top reason.
Despite the consequences, discussing questions or concerns about personal finances at work remains taboo: 59% of employees avoid this topic.
Mental health and staff turnover are two costly issues for employers: a burn-out can easily cost €60,000, and the costs of turnover can amount to 200% of an annual salary. This presents an opportunity for employers to proactively offer extra support with financial well-being, something that 54% of employees request.