E. Thomas Garman

Financial Stress, Pay Satisfaction and Workplace Performance

Employees’ personal lives affect their attitudes and behaviors at workplace. Financially stressed employees often bring their concerns to the workplace. This study focuses on the relationships between financial stress and work outcomes such as pay satisfaction, work time use, and absenteeism. The data in this research were collected from an insurance company in three mid-western states. A total of 262 questionnaires were used in the data analysis. Significant relationships were found between financial stress and work outcomes including pay satisfaction, work time use and absenteeism. People who had higher levels of financial stress had lower levels of pay satisfaction, were more likely to waste their work time, and more frequently absent from work. Employers might reduce absenteeism and productivity if they can help employees reduce their financial stress by offering effective workplace financial education.