Dive Brief:

• Employees who are lacking when it comes to managing their personal spending budgets are more likely to experience "unmanageable financial stress" than those who are more thrifty. Employers can help change that scenario, according to a new study.
• The study, from Financial Finesse, identified cash management as a primary, underlying factor in determining an employee's financial stress level, which can spill over into their every day performance on the job.
• The cash management divide is wide, with employees making up two main groups: those dealing with manageable financial stress levels (some or none) and those with unmanageable levels (high or overwhelming).

Dive Insight:

Employees who are not over-stressed by finances have a solid financial foundation in place to achieve longer-term financial goals. On the flip side, the study found that "unmanageable" stress levels not only give employees a sense their spending is out of control, but also feeling there is little hope for turning things around.

According to Liz Davidson, CEO and founder of Financial Finesse, the direct blow to employers can mean lost productivity, increased risk of on-the-job accidents and added absenteeism. If this epidemic continues to grow, Davidson says, employers could face a much bigger dilemma where financial stress is so widespread in the workforce it will be difficult to reverse.

There many ways employers can help. Among others, Davidson says a main way to address unmanageable financial stress is to help employees get a handle on what they’re doing with their wallets every day by offering one-on-one financial coaching.