According to a recent study on the state of employee well-being, which found a number of factors that affect work productivity, female workers suffer more from financial stress related to household expenses.
Research by Floatpays, an on-demand payroll access provider, shows that financial well-being is a key driver of overall employee well-being and ultimately their productivity, and has revealed some gender nuances when it comes to financial well-being.
The most important difference was the main source of financial stress for women compared to men, which showed that more women than men attributed their financial stress to the pressure of caregiving responsibilities and household expenses.
Andisa Liba, Human Resources Director at Floatpays, says this is not surprising given that 42.1% of households in South Africa are headed by women.
The study was conducted to provide insight into the factors driving the current state of employee well-being in South Africa, with the ultimate goal of helping businesses improve productivity levels through the optimization of employee well-being programs.
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The gender dimension of financial stress
Focusing on the aspect of financial stress as a factor contributing to employee well-being, the study divided respondents by several demographic characteristics, including ethnicity, age, income level and gender. One of the most compelling findings highlighted the plight of women.
According to the study, 57% of women attribute their financial stress to household expenses, compared to 49% of men. In addition, the study found that the cost of food affects 52% of women compared to 42% of men.
“These findings point to gender issues that need to be addressed in the workplace because this stress ultimately affects the bottom line,” says Lieba.
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Financial stress and work performance
The study found that all employees experiencing financial stress reported sleep problems, difficulty concentrating, and a negative impact on their mood. However, the proportion of women who experience low emotional state is almost 10% higher than their male counterparts.
“Financial stress is a key factor in a negative chain reaction that leads to problems such as absenteeism, poor attendance and mistakes in the workplace, which affects productivity. Financial stress is the opposite of financial well-being, and since such a large component of employee well-being is related to the financial health of employees, this should be of great concern to South African employers.”
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Providing a better employee experience
However, Liba says, working to improve the employee experience is a multifaceted task that includes, but is not limited to, aspects such as fair compensation. Access to learning and development opportunities was rated higher for women in particular compared to men, according to the study.
These learning opportunities extend to professional development, but also include education in aspects of financial management, which include learning how to be better financially prepared for emergencies, maintaining healthy debt levels, and managing cash flow between paychecks.
A total of 89% of female respondents in the study expressed a need to be educated about how to better manage their money. Lieba says employers can offer such on-the-job training because financial health affects productivity.
“Solutions to improve employee well-being, such as developing financial management skills, must take into account prevailing gender nuances. Women who do most of the housework can benefit enormously from education on how to manage their money more effectively and practical tools to help them better manage their payday cash flow and save in tight financial situations.”
