Financial stress is the leading cause of unproductivity and unhappiness among female employees

I am not just talking about the, less educated women in Africa, India, Afghanistan or even Guetemalà and such places that are usually associated with suffering women.

I am talking about that one in the air conditioned corporate office in high heels and a pine striped suit with a face pristinely made up and well manicured nails.? Yes, that one who is in the meeting but her mind is miles away.? She is crushing under her credit card debt, the bills that are piling up.? She’s running late on most of them, her house may be foreclosed on any minute. She dreads the phone ringing, and mostly the words “come pick your kids, they have been sent home from school due to unpaid fees”.? What about that check she issued, will it bounce??

She asks herself, is it me, or the job that’s the problem?? Is this job even making sense?? She concludes that there is something wrong with the job, so her mind switches off!

She sits there, staring blankly, the boss calls on her, "Miss X, what do you think?"? She is startled.? She has no idea what’s going on.? There and then, she’s labeled a non performer, a slacker, not smart, never to be promoted or to amount to anything in that organization.? It’s a vicious cycle, the lack of promotion means that her income remains low, but the stress keeps her distracted. Is it her, or the job that’s the problem?

But wait a minute, she graduated college, got a job, started working, earning and spending based on what? Experience from her parents who were perpetually in debt, her friends, the party animals or her neighbors who were changing cars every day making her feel left behind?? Did the onboarding into her new job come with some tips on how to manage personal finances?? Is managing money intuitive?

A recent survey of 10,484 US employees revealed the following findings:??

• Money and finances are a leading cause of stress for 48% of American workers in general, but men feel the burden much less than women.?
• 38% of women are financially fit compared to 52% of men
• On average, women are paid one-third less annually than men, which means it is more difficult for them to save money and they are more likely to run out of money before payday
• 41% of women have less than $500 in their checking accounts (vs. 18% of men)
• 63% of women feel they don’t earn enough to save (vs. 51% of men),?
• 34% of women run out of money before payday (vs. 25% of men)
• A majority of women (70%) feel they do not have enough money for retirement compared to 50% of men
• Only 56% of women have a 401(k) plan (vs. 62% of men) and only 66% of women understand how a 401(k) works (v. 76% of men)
• Debt is a never-ending cycle for women. They have higher rates of student loan debt (33% vs. 27%) and medical debt (35% vs. 29%).?
• They’re also more likely to be refused a loan than men (40% vs. 30%) which ultimately forces them to resort to expensive credit cards or payday loans, putting them further into debt.?

These statistics are from the US. What about the less developed countries? Beyond the usual burden of lack of employment opportunities or income generating activities, taking care of the extended family “black tax” as it has become known in Africa, is a real source of stress.? In a recent Bankrate survey, 46 % of women say money negatively impacts their mental health as compared to just 38 % of men.? Bankrate.com analyst Sarah Foster pointed to the gender pay gap as one reason women are more stressed.

”I think we can’t underestimate what role that plays in causing financial stress just because women are used to making significantly less than men,” Foster said. “That makes every kind of financial step harder, whether it’s preparing for retirement or even just budgeting”

?Financial stress on women significantly impacts their day-to-day lives including worry, stress, anxiety, panic, depression, sleepless nights, and troubled relationships. What’s more, many women are either working moms, single moms, divorcees, and/or the daughter of elderly parents. Each one of these categories can leave a long-lasting negative impression on a woman’s finances.?

Women face unique situations that also exacerbate their financial stress.??

• Maternity leave alone can put women further into debt. A majority (63%), report taking maternity leave -59% of those said it impacted their ability to pay bills and 53% said they had to take on debt in order to make ends meet.??

• According to a recent CNBC article, women will stay in unhappy marriages due to financial insecurity and stress. This comes as no surprise given the fact that the Salary Finance survey revealed women are more likely to perceive finances as a “scary” topic. It’s common for women to become financially dependent on their spouse and/or allow their spouse to handle the finances. As a result, women are worried about the financial impact a divorce would cause. In the case of divorcees, women are often left in financial hardship because of the financial decisions that were made during their marriage and their divorce.??

• More often than not, daughters are tasked with the responsibility of taking care of their aging parents. According to the Family Caregiver Alliance, approximately 43.5 million Americans are providing unpaid care to an older adult. While men can also be caregivers, women shoulder most of that burden. The article goes on to say upwards of 75% of all caregivers are women and they spend 50% more time providing care than men.??

If you are an employer, are you going beyond the basics of giving information on, medical benefits and employer funded pension plan or lack thereof?? Are you going to, or willing to ensure that women receive financial wellness training so that they can thrive financially?? If you are not, you are shooting yourself in the foot.? Paying attention to employees' and especially women’s financial wellness has a direct impact on their performance at work.

Financial wellness is as important as general and mental health that are usually the focus of many employer sponsored programs.

I am on a journey to help women thrive financially. Invite me to come and speak to the women in your organization on financial wellness. For more information, kindly checkout my website www.onokacoaching.com

References:? https://www.countrywideppls.com/docs/the_impact_of_financial_stress_on_women

https://www.live5news.com/2022/07/12/financial-stress-higher-women-expert-attributes-gender-pay-gap/

(This views are not on behalf of any organization that I work for, or have in the past)