When employee performance drops, managers usually look in the same places: too much workload, lack of training, or unbalanced team dynamics. These factors can affect performance, but for many employees, the cause lies outside the office. The culprit is financial stress. Many report that it affects their mental health, relationships, and focus. When HR understands this and works to support their employees, their home and work life benefits
Why Financial Stress Is an HR Issue
Financial stress is not trivial in the workplace because it directly affects engagement and productivity. In FP Canada’s 2024 Financial Stress Index, it was revealed that over 40% of Canadians cite money as their top cause of stress. This has led to health issues and a lack of concentration.
This means increased absences, missed deadlines, and lower productivity levels at work. For HR teams that want to remain efficient, this is a risk that cannot be ignored.
Recognizing the Signs Without Overstepping
How can management know this is what their employees are dealing with without overstepping? You do not need to go around asking your employees about their personal finances; rather, your job is to recognize certain patterns and create a supportive structure when the need arises.
Look for changes in employee behavior and performance. With employee performance evaluation software, you can monitor this centrally and run employee performance evaluation programs to know how each one is doing. Do not underestimate in-person check-ins either. If you notice a previously diligent employee suddenly becomes withdrawn with increased errors, it might be time to call them in for a supportive performance conversation.
Having a regular check-in with the employee creates a safe space for them to raise their concerns, whether related to workload or external stressors.
What HR Teams Can Actually Do to Help
It is not HR’s job to provide financial advice, but you can help your employees. You can reduce their overall stress and steer them in the right direction to get credible help. Here is how to do that.
Promote Existing Resources
How aware are your employees of existing support programs? Make sure they know how to access your Employee Assistance Program (EAP) and credible public resources like the Financial Consumer Agency of Canada’s financial wellness tools.
Provide Clarity And Stability At Work
You do not want to increase their stress through miscommunication and unclear expectations. Instead, make sure goals, OKRs, and feedback are as clear as possible. That removes an extra layer of anxiety because they know exactly what is required of them.
Build A Culture Of Continuous Feedback
Feedback should come in as often as possible; annually is too infrequent. The more often you get feedback, the more likely you are to catch early signs of disengagement. Continuous feedback and surveys help managers to stay connected to how their teams are actually doing.
In HR, you might not be able to control everything in your employees’ lives. However, by focusing on what you can control, like support, feedback, and communication. With this, you can help employees stay engaged and productive even when they face pressures outside of work.
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